Financial Report20 | 21

Contents

		 LEM Group5

Consolidated financial statements

10Notes to the consolidated financial statements

40

Auditor’s report

44

Corporate governance report

54

Compensation report

60

Auditor’s report		

LEM HOLDING SA

62

Financial statements

64

Notes to the financial statements

68

Auditor’s report

70Group subsidiaries

LEM Financial Report 20 | 21

Page 3

Consolidated statement offinancial position

LEM Group

AssetsNotes

31.3.2021

31.3.2020

in CHF thousands

Current assets
Cash and cash equivalents

22’41819’243

Accounts receivable

572’25958’256Inventories

6

41’73533’764

2’456

1’332

Income tax receivable
Other current assets

7

Total current assets

2’950

2’828

141’818

115’423

Noncurrent assets
Property, plant and equipment

8

50’38745’155Right-of-use assets

9

7’253

5’962

Intangible assets

10

4’326

4’474

Deferred tax assets

20

59’74158’277

Other noncurrent assets

11

848

1’023

Total noncurrent assets

122’555

114’891

Total assets

264’373

230’313

Notes

31.3.2021

31.3.202012

27’092

22’11628’85225’331

Liabilities and equity
in CHF thousands

Current liabilities
Accounts payable
Accrued expenses
Lease liabilities

9

3’458

1’629

Income tax payable

20

31’027

36’692Current provisions

13

889

2’288

24’000

9’000

Interest-bearing loans and borrowings
Other current liabilities

14

Total current liabilities

2’281

916

117’599

97’971

4’514

Noncurrent liabilities
Noncurrent lease liabilities

9

3’905

Noncurrent provisions

13

1’386

148

Deferred tax liabilities

20

3’409

3’020

Other noncurrent liabilities

14

6’175

7’297

Total noncurrent liabilities

14’875

14’979Total liabilities

132’474

112’950

EquityShare capital

15

570

570

Treasury shares15(1’156)(581)

Reserves

LEM Financial Report 20 | 21

Page 4

9’181

5’082

Retained earnings

123’304

112’292

Total equity

131’899

117’363

Total liabilities and equity

264’373

230’313LEM Financial Report 20 | 21

Page 5

Consolidated
income statement

Consolidated statement ofcomprehensive income

April to March
Notes

2020/21

April to March
2019/20in CHF thousands

Notes

2020/212019/2055’59760’693(6’132)in CHF thousands

Sales

Net profit for the period recognized in the income statement

300’966

307’942(160’369)(165’195)

Gross margin

140’597

142’747

Other comprehensive income to be reclassified to profit and loss
in subsequent periods

Sales expenses(26’343)(28’232)

Currency translation difference

3’524

Administration expenses(26’306)(28’270)

Income tax

(433)

525

Research & development expenses(28’248)(28’038)

Total other comprehensive income to be reclassified to profit and loss
in subsequent periods

3’091(5’607)(3’469)

Cost of goods sold

Other income

1’196

120

Operating profit

60’89658’327

Financial expenses

17

(510)

(505)

Financial income

18

148

191

Foreign currency exchange effect

19

351

(2’379)60’885

Profit before taxes
Income taxes

20

Net profit
Earnings per share, in CHF
Basic & diluted earnings per share

21

Other comprehensive income not to be reclassified to profit and loss
in subsequent periods
Remeasurement gains /(losses) on defined benefit plans

23

1’849

Income tax

20

(277)

358

55’634

Total other comprehensive income not to be reclassified to profit and loss
in subsequent periods

1’572(3’111)(5’288)5’059

55’59760’693

Other comprehensive income /(loss) for the period, net of tax

4’663(8’719)

48.79

53.27

Total comprehensive income for the period

60’26051’975The accompanying notes are an integral part of the consolidated financial statements.

LEM Financial Report 20 | 21

Page 6LEM Financial Report 20 | 21

Page 7

Consolidated statement ofchanges in equity

Consolidated cash flow
statement

Attributable to shareholders
Notes
in CHF thousands

1 April 2019

Sharecapital570

Treasuryshares(983)

Capitalreserve
12’926

Translation
reserve(1’310)Net profit for the year

Retainedearnings
101’922113’125

60’69360’693

Other comprehensive income/(loss)(6’132)(2’587)(8’719)Total comprehensive income(6’132)58’107

51’975(47’855)(47’855)

Dividends paid

15

Movement in treasury shares

15

31 March 2020

570

402

(402)

(581)

12’524(7’441)

April to MarchTotalequity119

119112’292

117’363Notes

2020/212019/20

Profit before taxes

60’88555’634

Adjustment for noncash items and taxes paid

4’962

8’084

in CHF thousands

CASH FLOW FROM OPERATING ACTIVITIESNet financial result

(18)

(23)

Derivative financial instruments revaluation

1’133

(488)

Depreciation and amortization

13’74614’460Gain / Loss on disposal of fixed assets
Increase (+) / decrease (-) of provisions and allowances

1 April 2020

570

(581)

12’524(7’441)

Net profit for the year

112’292

117’363

55’59755’597

Other comprehensive income/(loss)

3’524

1’139

4’663

Total comprehensive income

3’524

56’73660’260(45’580)(45’580)

(144)

(144)

123’304

131’899

Dividends paid

15

Movement in treasury shares

15

31 March 2021

570

(575)

575

(1’156)13’099(3’917)

Movement in pension
Interest received
Interest paid
Taxes paid

432

3’347

1’025

137

378

128

112

(110)

(90)

(13’407)(7’723)

Cash flow before changes in net working capital

65’861

63’718Change in inventories(8’086)

2’296

Change in accounts receivable and other current assets(12’650)

6’652

Change in payables and other liabilities
Cash flow from changes in net working capital
Cash flow from operating activities

The amount available for dividend distribution is based on LEM HOLDING SA shareholders’ equity determinedin accordance with the legal provisions of the Swiss Code of Obligations.

20

5’760

955

(14’976)

9’902

50’88573’620CASH FLOW FROM INVESTING ACTIVITIESInvestment in fixed assets

8(13’190)(14’346)

Investment in intangible assets

10

(464)

(325)

Increase (–) in other assets

(248)

(313)

Decrease (+) in other assets

446

258

(13’456)(14’725)(8’824)

Cash flow from investing activities
CASH FLOW FROM FINANCING ACTIVITIESTreasury shares acquired (–)

15(12’516)

Treasury shares divested (+)

15

12’371

8’943(4’324)(4’519)(45’580)(47’855)

Payment of lease liabilities
Dividends paid to the shareholders of LEM HOLDING SA

106’000

72’500Decrease (–) in financial liabilities(91’000)(71’500)

Cash flow from financing activities(35’048)(51’256)

Change in cash and cash equivalents

2’381

7’640

Cash and cash equivalents at the beginning of the period

19’243

12’538Exchange effect on cash and cash equivalents
Cash and cash equivalents at the end of the period

LEM Financial Report 20 | 21

Page 815

Increase (+) in financial liabilities

LEM Financial Report 20 | 21

Page 9794(934)

22’41819’243

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

1.
General information
LEM Group (the Group) is a leading company in electrical measurement. LEM engineers the best solutions for energy and mobility, ensuring that its customers’ systems are optimized, reliable and safe. The Group has operations in fifteen countries andemploys 1’448 people per 31 March 2021. The parent company of LEM Group is LEM HOLDING SA (the Company) which is alimited company incorporated in Switzerland.
Following the move of LEM HOLDING SA head-office on 9 June 2020, the new registered office is Chemin des Aulx 8, 1228
Plan-les-Ouates. The financial year ends on 31 March (the year). The Company has been listed on the SIX Swiss Exchange since1986. The Board of Directors approved the consolidated financial statements on 12 May 2021, to be submitted for approval by
the Annual General Meeting of Shareholders on 24 June 2021.

2.
Significant accounting principles
2.1 Basis of preparation
The consolidated financial statements of LEM Group have been prepared in accordance with the International Financial andReporting Standards (IFRS) and interpretations published by the International Accounting Standards Board (IASB) and comply
with Swiss law.
The consolidated financial statements have been prepared using the historical cost convention except that, as discussed in
the accounting policies below, certain items like derivatives are recorded at fair value.
The financial information is presented in thousands of CHF. The totals are calculated with the original unit amounts which could
lead to rounding differences. These differences in thousands of units are not changed in order to keep the accuracy of theoriginal data.
2.2 Adoption of new and revised International Financial Reporting Standards and interpretations
New and amended standards and interpretations
The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on orafter 1 January 2020. The Group has not early adopted any other standard, interpretation or amendment that has been issued
but is not yet effective.
Standard or ­interpretation

Title

Effective date

IFRS 3

Definition of a Business

1 January 2020

IFRS 7, IFRS 9 and IAS 39

Interest Rate Benchmark Reform

1 January 2020

IAS 1 and IAS 8

Definition of Material

1 January 2020

Conceptual Framework

1 January 2020

2.3 Summary of critical accounting estimates and judgments
The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions
that affect the reported amounts of revenues, expenses, assets, liabilities and related disclosures at the date of the financial
statements. These estimates are based on management’s best knowledge of current events and actions that the Group mayundertake in the future. However, actual results could differ from those estimates. The key assumptions concerning the futureand other key sources of estimation uncertainty at the reporting date are discussed below.
LeasesThe Group assessed whether a contract is or contains a lease at inception of the contract. This assessment involves the exercise of judgment about whether it depends on a specific asset, whether the group obtains substantially all the economic
benefits from the use of that asset, and whether the Group has the right to direct the use of the asset.
Impairment of goodwill, other intangible assets and property, plant and equipment
The Group tests annually whether goodwill has suffered any impairment in accordance with the accounting policy. The recoverable amounts of cash-generating units have been determined based on value-in-use calculations. Other intangible assets andproperty, plant and equipment are tested for impairment if there is a triggering event indicating a potential impairment. These
calculations require the use of estimates in particular to the expected growth of sales, discount rates and development of raw
material prices.
Provisions
Provisions are recognized only if the specific criteria under IFRS are met. Provisions represent presumed obligations arisingfrom past events and are recognized only if their amount can be estimated reliably. Nevertheless, provisions are based onassumptions.
Income and other taxes
The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. Some of these positions are
inherently uncertain and include those relating to transfer pricing matters and the interpretation of income tax laws applied tocomplex transactions. The Group periodically reassesses its tax positions. Changes to the financial statement recognition,measurement, and disclosure of tax positions are based on management’s best judgment given any changes in the facts, circumstances, information available and applicable tax laws.

These amendments had no impact on the consolidated financial statements of, nor is there expected to be any future impact
to the Group.
Future standards
There are no standards that are not yet effective and that would be expected to have a material impact on the Group in thecurrent or future reporting periods.

LEM Financial Report 20 | 21

Page 10LEM Financial Report 20 | 21

Page 11

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

Employee benefits
The standard requires that certain assumptions are made in order to determine the amount to be recorded for defined benefit
obligations and pension plan assets, in particular for defined benefit plans. These are mainly actuarial assumptions such as
expected salary increase, employee turnover and discount rates. Substantial changes in the assumed development of any ofthese variables may significantly change LEM Group’s retirement benefit obligation and pension plan assets.

The following table summarizes the principal exchange rates that have been used in the translation process:Valuation of deferred tax assets
The carrying amount of deferred tax assets is reviewed on each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
2.4 Basis of consolidation
The consolidated financial statements are comprised of LEM HOLDING SA and of its subsidiaries.
Subsidiaries
Subsidiaries are those entities over which the Group has control. Control is when the Group is exposed, or has rights, to variable
returns from its involvement with subsidiary and has the ability to affect those returns through its power over the subsidiary to
direct the relevant activities.
Business combinations are accounted for using the acquisition method. Companies that are acquired are included when control is obtained and are consolidated until control is transferred to another acquirer. The cost of purchasing a company is determined as the sum of the fair value of the assets that are to be paid to the seller and the obligations that are entered into, or
assumed, on the date of purchase. Identifiable acquired assets, liabilities and contingent liabilities are recognized at their fairvalue as of the date of their acquisition. The Group’s share of the purchase price that exceeds the fair value of the identifiable
net assets is recognized as goodwill. The Group’s share of the fair value of the identifiable net assets that exceeds the purchaseprice is shown as gain on bargain purchase on the income statement.
Intragroup assets and liabilities as well as income and expenses are set-off against each other.
Unrealized intragroup profits particularly on inventories and fixed assets are eliminated.
Associates
Investments in associated undertakings are accounted for using the equity method. These are undertakings over which theGroup exercises significant influence, but which it does not control.
No associated undertakings exist as per 31 March 2021 and 31 March 2020.
2.5

Foreign currencies

Currency

Income statementof 2020/21

Income statementof 2019/20

Balance sheet
31.3.2021

Balance sheet
31.3.2020

Average rate in CHF

Average rate in CHF

Year-end rate in CHF

Year-end rate in CHF

BGN

0.550

0.561

0.566

0.541

CNY

0.136

0.142

0.144

0.136

DKK

0.144

0.147

0.149

0.142

EUR

1.076

1.097

1.106

1.059

GBP

1.205

1.255

1.298

1.191

JPY

0.00870.00910.00850.0089

RUB

0.012

0.015

0.012

0.012

USD

0.922

0.987

0.943

0.963

MYR

0.221

0.235

0.227

0.223

Foreign currency transactions
Foreign currency transactions are translated at the market rate prevailing at that time. The monetary assets and liabilities aretranslated at the year-end rates while non-monetary assets are translated at historical rates. Gains and losses arising from thetransactions as well as from the translation of monetary assets and liabilities in foreign currencies are recorded as income or
expenses in the income statement (except from translation differences arising from a monetary item that forms part of theGroup’s net investment in a foreign operation which are included in shareholders’ equity).
2.6 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash at bank and cash at postal accounts and bank deposits with an original
maturity of three months or less from the date of acquisition that are readily convertible to known amounts of cash.
2.7 Inventories
Inventories are stated at the lower of cost or net realizable value. The first-in, first-out (FIFO) method is applied. The cost of finished goods and work in process comprise raw materials, direct labor cost and other cost that can be directly allocated, suchas production overhead expenditures. Allowances are established when:– there is an objective indication that the Group will not be able to sell the goods in due time;– the goods are damaged, in excess or obsolete;– the net realizable value is below cost.

Functional and presentation currency
The consolidated financial statements are presented in Swiss francs as the presentation currency. The subsidiaries use local
currencies as their functional currency which is the currency of the primary economic environment in which they operate.

2.8 Property, plant and equipment
Property, plant and equipment is stated at cost of acquisition or construction, less depreciation and any impairment. Depreciation is calculated on a straight-line basis on the following estimated useful life:

Foreign currency translation
All assets and liabilities in the balance sheets of subsidiaries that are denominated in the respective functional currencies aretranslated into Swiss francs at the year-end exchange rate. Items in the income statement and cash flow statement are translated at the average exchange rate for the year. The resulting translation differences are recognized in other comprehensive
income. When a foreign operation is disposed, the cumulative translation differences recognized in other comprehensive
income are transferred to the income statement.

Land

nil

Buildings

20 – 40 years

Machinery and equipment

5 – 8 years

Tools and moulds

2 – 5 years

Vehicles3 – 5 years

IT equipment

3 – 5 years

LEM Financial Report 20 | 21

LEM Financial Report 20 | 21

Page 12Page 13

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

Repairs and renewals are charged to the income statement when the expense is incurred. Subsequent expenditure on an itemof property, plant and equipment is capitalized only when it is probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured reliably.

Other intangible assets
Other intangible assets with definite useful lives are carried at cost less amortization and any impairment.
Expenditure on computer software, acquired patents, trademarks and licenses is capitalized and amortized using the straightline method over their useful lives, not exceeding five years.

2.9 Leases
The Group recognizes a right-of-use asset and a corresponding lease liability with respect to contracts considered as a leasein which the Group acts as lessee, except for leases with a term of 12 months or less (“short-term leases”) and leases for which
the underlying asset is of a low value (“low-value asset”).
At the commencement date of a lease, a lessee recognizes a liability measured at the present value of future lease payments
using the interest rate stated in the contract or in the absence of such a rate an incremental borrowing rate (i.e., the lease liability) and a corresponding asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use
asset). Extension options are initially only considered if the Group is reasonably certain that such options are exercised. Leaseliabilities are subsequently remeasured in case the lease term is changing or if extension options are reassessed. Right-of-use
assets are adjusted accordingly if lease liabilities are reassessed.
Lease liabilities are thereafter recorded at amortized cost whereas right-of-use assets are depreciated on a straight-line basis
over the lease term.
Real estate leases
The Group leases buildings for use as office and warehouse space. Lease terms are negotiated on an individual basis andcontain a wide range of different terms and conditions. Leases are typically made for a fixed period of 1 to 15 years and may
include extension options.
Vehicles leases
The Group maintains some leased vehicles with an average lease term of 3 years.
2.10 Intangible assets
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net assets of theacquired subsidiary at the date of acquisition. Goodwill on acquisitions is reported in the balance sheet under intangible assets
and carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.

2.11 Impairment of tangible fixed assets, intangible assets and right-of-use assets
Assets that are subject to depreciation and amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which
the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value lesscost to sell and value in use.
For the purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable
cash-flows (cash-generating unit).
The value in use is calculated based on the estimated future cash-flows expected to result from the use of the asset and eventual disposal, discounted using an appropriate non-current interest rate.
Goodwill is tested for impairment annually (at 31 March) and when circumstances indicate that the carrying value may be
impaired. Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill
relates. Impairment losses relating to goodwill cannot be reversed in future years.
2.12 Financial assets
Financial assets comprise cash, receivables, certain accrued income, marketable securities and derivative financial instruments. Financial assets are recorded on the trade date.
Initial recognition and measurement
At initial recognition, financial assets are designated into two categories, financial assets at fair value through profit and loss
and at amortized cost.
Financial assets are initially recognized at fair value plus, in the case of a financial asset not at fair value through profit and loss,
directly attributable transaction costs.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification:– financial assets at fair value through profit and loss (refer to note 2.13);– loans and receivables are measured at amortized cost using the effective interest rate method, less impairment.

Research & development
Research costs are expensed as incurred. An intangible asset arising from development is recognized if, and only if, the Groupcan demonstrate the following:– the technical feasibility of completing the intangible asset;– Group’s intention to complete the intangible asset;– ability to use or sell the intangible asset and the expectation that the intangible asset will generate probable future economic
benefits;– the availability of adequate technical, financial and other resources to complete the development; and– the ability to measure the expenditure attributable to the intangible asset during its development reliably.
Such development costs are capitalized and amortized over the life of the product or process.

Accounts receivable are carried at original invoice amount less an allowance made for doubtful accounts based on a review ofall outstanding amounts at year-end covering expected lifetime credit losses. Allowances for doubtful accounts are establishedwhen there is an objective indication that the Group will not be able to collect the amounts due. Allowances for doubtful accounts are written-off when identified not recoverable in full. For accounts receivable that are not individually adjusted, LEM
applies the simplified approach for the recognition of the expected lifetime losses using a provision matrix.

LEM Financial Report 20 | 21

LEM Financial Report 20 | 21

Page 14

Other receivables are measured at amortized cost less allowances for amounts that are deemed not to be recoverable.

Page 15

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

2.13 Derivative financial instruments
The Group uses derivative financial instruments to hedge foreign exchange risks of forecasted transactions. Derivative financial
instruments comprise forward exchange contracts.
Derivative financial instruments are initially measured at fair value and subsequently at fair value through profit and loss. Any
gains and losses arising from changes in fair value on derivatives are recorded directly in the income statement which meansthat the Group does not apply hedge accounting.
Derivative financial instruments are shown as part of other current assets and other current liabilities. In case the maturity isafter more than one year, derivative financial instruments are recognized under other non-current assets or other non-current
liabilities.

Defined contribution plan
The subsidiaries sponsor defined contribution plans incl. state plans based on local laws and regulations. Defined contribution
plan expenses are recorded in the income statement as incurred.

2.14 Financial liabilities
Financial liabilities comprise bank loans, payables, certain accrued expenses and derivative financial instruments at the end of
the period. Financial liabilities are initially recorded on the trade date.
All financial liabilities are recognized initially at fair value less, in the case of financial liabilities not at fair value through profit andloss, directly attributable transaction costs.
Financial liabilities that are due within 12 months after the balance sheet date are classified as current liabilities unless the Group
has an unconditional right to defer settlement of the liability until at least 12 months after the balance sheet date.
Borrowing costs are expensed as incurred except if they are capitalized as part of a qualifying asset.
Subsequent measurement
Subsequently, financial liabilities other than derivatives are measured at amortized cost based on their effective interest rate.
Interest expenses and foreign currency revaluations are recognized in the income statement. On derecognition, gains and losses are recognized in the income statement. Financial liabilities are derecognized when the contractual obligations are fulfilled,
cancelled or expire.
2.15 Employee benefits
The Swiss and German subsidiaries provide a defined benefit plan for employees; the other subsidiaries provide defined contribution plans according to local laws. In both cases the charges are included in the related periods in the personnel expensesof the various functions where the employees are located.
Defined benefit plan
The defined benefit obligation is determined annually by qualified independent actuaries. The obligation and cost of pension
benefits are determined using the projected unit credit method. Service costs are part of personnel expenses and consist of
current service cost, past service cost and gains/losses from plan settlements. Past service cost are recognized at the earlier of the date when the plan amendment occurs, or when restructuring cost are recognized. They include plan amendment
and curtailment. Gains or losses on settlement of pension benefits are recognized when the settlement occurs. Net interestis recorded in the financial result and is determined by applying the discount rate to the net defined benefit liability/asset thatexists at the beginning of the year. Actuarial gains and losses resulting from changes in actuarial assumptions and experience
adjustments are recorded in other comprehensive income as remeasurements of employee benefits. The return on plan assets(excluding interest based on the discount rate) and any change in the effect of an asset ceiling are also recorded in this line.
In accordance with IFRIC 14, any assets resulting from surpluses in defined benefit plans are limited its economic benefit suchas to the value of the maximum future savings from reduced contributions.

LEM Financial Report 20 | 21

Page 16LEM Incentive System
The LEM Incentive System consists of a short-term incentive component and a long-term incentive component. The short-term
incentive component compensates for the actual annual results and achieved performance. The long-term incentive plan rewards the members of the Executive Management and Senior Managers for the sustainable financial performance of the Group.
Both elements are cash settled and the bonus payments are made in the first four months of the following fiscal year. The estimated payments are accrued for at year-end.
2.16 Provisions and contingent liabilities
Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made of the amount of
the obligation.
Warranty and customer claims
The Group recognizes the estimated liability to replace products still under the contractual warranty at the balance sheet date.
This position is calculated based on past history of the level of repairs and replacements. Additional specific provisions arebooked when required.
Litigations
The Group recognizes the estimated country and entity-specific risks relating to litigations with former personnel or indirect
taxation.
Restructuring
A constructive obligation to restructure arises only when an entity has a detailed formal plan for the restructuring identifying
at least:– the business or part of a business concerned;– the principal locations affected, function and approximate number of employees who will be compensated for terminating
their services;– the expenditures that will be undertaken; and– when the plan will be implemented;
and raised a valid expectation in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it.
Contingent liabilities
Contingent liabilities arise from past events where the outcome depends on future events. As the probability either cannot bemeasured reliably or the probability for a subsequent outflow lies below 50 %, contingent liabilities are not recognized in thebalance sheet but are described in the notes.

LEM Financial Report 20 | 21

Page 17

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

2.17 Share capital
LEM HOLDING SA has only ordinary registered shares. Dividends on ordinary shares are deducted from equity in the period inwhich they are paid.

3.

Treasury shares
Own equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain orloss is recognized in the income statement on the purchase, sale, issue or cancellation of the Group’s own equity instruments.
Any difference between the carrying amount and the consideration is recognized in retained earnings.

In CHF thousands

Segment Information

Business segment information
Industry

2.18 Revenue recognition
Revenue from the sale of products is recognized at a point in time when LEM satisfies its performance obligation which is themoment when the customer acquires control over the products. This is generally achieved at delivery of the products. Revenue
is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of
payment and excluding taxes or duty.
Revenue from the sale of products comprises all revenue that is derived from sales of products to third parties after deductionof rebates and value-added taxes.
2.19 Income taxes and deferred taxation

2020/212019/20

Sales

225’233

240’371

EBITDA

58’36460’301

6’181

5’962

321

942

Automotive
2020/21

LEM Group

2019/20

2020/212019/2075’73367’571300’966

307’942

16’278

12’48674’64272’787

2’897

2’528

9’078

8’490

105

313

426

1’256

Income statement

Depreciation and amortization:
Property, plant and equipment
Intangible assets
Right-of-use assets

2’467

2’961

1’774

1’753

4’242

4’714

Total

8’969

9’865

4’777

4’595

13’74614’460Operating profit

49’39550’436

11’501

7’891

60’89658’327(11)(2’693)

Net financial expenses
Taxes(5’288)

5’059

Net profit for the year

55’59760’693

14’346

Capital expenditures

Income taxes
Income taxes comprise all current and deferred income taxes, including the withholding tax payable on profit distributions within the Group. Income taxes are recognized in the consolidated income statement except for income taxes on transactions thatare recognized directly in shareholders’ equity or in other comprehensive income.
Deferred taxation
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax base of
assets and liabilities and their carrying amounts in the financial statements. Deferred taxes are determined using tax rates that
apply, or have been substantially enacted, on the balance sheet date in the countries where the Group is active. Tax losses
carried forward and deductible temporary differences are recognized as deferred tax assets to the extent that it is probablethat tax profit will be available in the future against which the tax losses carried forward can be utilized. Deferred tax assets andliabilities are offset against each other if the corresponding income taxes arise by the same tax authority and a legally enforceable right for offsetting exists.

Tangible assets

7’156

7’484

6’034

6’862

13’190Intangible assets

347

253

117

71

464

325

7’503

7’737

6’151

6’933

13’654

14’670Total capital expenditures

For management purposes, LEM Group is organized into two operating segments, Industry and Automotive. The Industry segment develops, manufactures and sells electronic components called transducers for the measurement of current and voltage
of various industrial applications. The Automotive segment develops, manufactures and sells transducers for applications in
automotive markets.

4.

Revenue information

Regional information
Industry

Automotive

2020/212019/20

2020/21

Europe81’72892’242

North America

21’85526’129Asia and rest of
the world

121’650

Total

225’233

In CHF thousands

LEM Group

2019/20

2020/212019/20

9’180

5’615

90’90897’858

8’583

11’25730’43737’387122’000

57’97050’699179’621

172’698

240’371

75’73367’571300’966

307’942Sales

LEM Financial Report 20 | 21

Page 18

LEM Financial Report 20 | 21

Page 19

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

Geographical information

Aging analysis of accounts receivable
China

USA

GermanyJapan

In CHF thousands

2020/212019/20

2020/212019/20

2020/212019/20

2020/212019/20

In CHF thousands

31 March 2020

Sales

113’11698’68028’77735’31129’70831’606

23’67729’430Noncurrent assets1

12’19519’958

52

55

163

183

3’967

3’966

Right-of-use assets

2’150

2’642

177

234

105

80

67

398

Italy

Switzerland

Rest of the world

LEM Group

Accounts receivable – trade
Allowances for doubtful accounts /expected credit losses< 30 days

31– 90 days

44’040

5’415

2’633

(90)

(13)

(132)

91– 180 days

> 180 days

Total

241

514

52’844

(60)

(469)

(763)

Other receivables

6’172

0

0

0

3

6’175

Total

50’123

5’402

2’501

181

49

58’25655’895

7’635

2’659

459

454

67’102

(10)

(96)

(135)

(136)

(333)

(710)

2020/212019/20

2020/212019/20

2020/212019/20

2020/212019/20

9’455

10’031

3 891

3’587

92’34199’298300’966

307’942

Accounts receivable – trade

Noncurrent assets1

34

36

32 941

15’929

5’362

9’501

54’71449’629Right-of-use assets

73

85

2 546

153

2’134

2’370

7’253

5’962

Allowances for doubtful accounts /expected credit losses

In CHF thousands

Not Due

31 March 2021
Sales

1 Other than financial instruments, deferred tax assets, post employment benefit assets

Other receivables

5’864

0

0

0

3

5’867

Total

61’749

7’539

2’524

323

124

72’259

Sales are reported as per place of transaction.
6.
5.

31.3.2021

31.3.2020

Raw material

19’487

18’100Work in progress

2’261

1’950

Finished goods and goods for resale

19’987

13’714

Total

41’73533’764in CHF thousands

Accounts receivable
31.3.2021

in CHF thousands

Accounts receivable – trade

67’102

Allowance for doubtful accounts / expected credit losses
Total accounts receivable – trade

31.3.202052’844

(710)

(763)

66’39252’080

Other receivables

5’867

6’175

Total

72’25958’256in CHF thousands

Total

Balance as per 1 April 2019

838

Addition

23

Unused amount reversed

0

Utilized during the year(70)

Foreign exchange effect(28)

Balance as per 31 March 2020

763

Balance as per 1 April 2020

763

Addition

41

Unused amount reversed

The inventories include allowances of CHF 5’565 thousand (at 31 March 2020 CHF 4’309 thousand).

7.

Movements of allowance for doubtful accounts/expected credit losses

Other current assets
31.3.2021

31.3.2020

Advances to suppliers

1’224

1’119

Prepayments and accrued income

1’622

1’351

Derivative financial instruments

10

320

Other current assets

94

37

2’950

2’828

in CHF thousands

Total

0

Utilized during the year

(115)

Foreign exchange effect21

Balance as per 31 March 2021

710

LEM Financial Report 20 | 21

Inventories

Page 20LEM Financial Report 20 | 21

Page 21

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

8.

9.
Right of use assets
The group presents the right of use asset of the lease as per the definition of IFRS 16:

Property, plant and equipment
Land and buildings

Machinery andequipment

Total

Net book value 1 April 201962

42’14642’209in CHF thousands

Investment

0

14’34514’345

Disposal

(8)

(424)

(432)

Net book value 1 April 2019

0

(52)

(52)

Depreciation(10)(8’480)(8’490)Foreign exchange effect(0)(2’425)(2’425)Net book value 31 March 202044

45’11145’155in CHF thousands

Other movements

At cost of acquisition142

125’070

125’213

Accumulated depreciation(98)(79’960)(80’057)

Net book value 31 March 202044

45’11145’155Net book value 1 April 202044

45’11145’155Investment

8

13’182

13’190

Disposal

0

(20)

(20)

Other movements

0

(9)

(9)

Depreciation(8)(9’070)(9’078)Foreign exchange effect

(2)

1’151

1’149

Net book value 31 March 2021

42

50’34550’387

At cost of acquisition

144

140’274

140’417(101)(89’929)(90’030)42

50’34550’387

Accumulated depreciation
Net book value 31 March 2021

LEM Financial Report 20 | 21

Page 22

Addition
Remeasurement
Depreciation

Real estate

VehiclesTotal

10’445366

10’811

603

104

707

(426)

0

(426)
(4’714)(4’505)(209)

Foreign exchange effect

(390)

(26)

(416)

Net book value 31 March 2020

5’727

235

5’962

At cost of acquisition

10’172441

10’613

Accumulated depreciation(4’445)(206)(4’651)

Net book value 31 March 2020

5’727

235

5’962

Net book value 1 April 2020

5’727

235

5’962

Addition

5’164

175

5’339

(16)

0

(16)

(4’050)(192)(4’242)Remeasurement
Depreciation
Foreign exchange effect
Net book value 31 March 2021

183

27

210

7’008

245

7’253

At cost of acquisition

12’624611

13’235

Accumulated depreciation(5’616)(367)(5’983)

7’008

245

7’253

Net book value 31 March 2021

LEM Financial Report 20 | 21

Page 23

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

9.1 Lease liabilities
The group presents the lease liabilities in the table below:

9.3 Lease commitments
The Group committed to a lease agreement for its new headquarter. The lease is starting on 14th September 2021 for 15 years.
The estimated right of use asset and the corresponding liabilities are amounting to CHF 25 million.

in CHF thousands

Balance as per 1 April 2019
Payment of lease liabilities including interest

Current leaseliabilities

Noncurrent
lease liabilities

4’568

6’243

10’811(4’825)0(4’825)Total

Non-cash items
Addition

68

639

707

Interest

298

Remeasurements

(27)

(399)

(426)

Transfer from noncurrent to current

1’650(1’650)0Exchange differences

(104)

(319)

(423)

Balance as per 31 March 2020

1’629

4’514

6’143

Balance as per 1 April 2020
Payment of lease liabilities including interest

298

1’629

4’514

6’143

(4’595)0(4’595)

2’754

2’584

5’338

Non-cash items
AdditionInterest

271

0

271

Remeasurements

(16)

0

(16)

3’371

(3’371)

0

43

178

221

3’458

3’905

7’363

Transfer from noncurrent to current
Exchange differences
Balance as per 31 March 2021

The weighted average incremental borrowing rate is 3.68 % (31 March 2020: 2.76 %).
The following table presents the contract undiscounted cash flows for lease obligations as at 31 March 2021:

10.

Intangible assets

in CHF thousands

Net book value 1 April 2019

31.3.2021

31.3.2020

Within 1 year

3’789

2’392

Within 1 year to 5 years

3’288

4’784

547

894

Above 5 years

9.2 Other lease disclosures
The following expenses related to the Group’s leasing activities are recognized in the income statement:
31.3.2021

In CHF thousands

Expenses relating to short-term leases / low value assets

31.3.2020

(494)

(541)

Depreciation of right-of-use assets(4’242)(4’714)

Interest expenses on lease liabilities

(271)

(298)

(5’007)(5’553)Total

LEM Financial Report 20 | 21

Page 24

Patents

Other
intangible assets

Total

3’127

173

1’878

5’178

Investment

0

0

325

325

Other movements

0

0

52

52

(0)

(43)

(1’212)(1’256)

Amortization
Foreign exchange effect

201

0

(26)

174

Net book value 31 March 2020

3’328

130

1’016

4’474

At cost of acquisition

3’328

Accumulated amortization

465

8’727

12’520(335)(7’711)(8’046)

Net book value 31 March 2020

3’328

130

1’016

4’474

Net book value 1 April 2020

4’474

3’328

130

1’016

Investment

0

0

464

464

Disposal

0

0

(42)

(42)
(426)

Amortization

0

0

(426)

Foreign exchange effect

(158)

0

15

(143)

Net book value 31 March 2021

3’171

130

1’025

4’326

At cost of acquisition

3’171

465

9’194

12’8300(335)(8’169)(8’504)

3’171

130

1’025

4’326

Accumulated amortization
In CHF thousands

Goodwill

Net book value 31 March 2021

The entire goodwill of LEM Group results from the acquisition of NANA in 2000/01 and is allocated to the cash-generating unit
LEM Japan KK. The goodwill relates to the Industry segment. The recoverable amount has been determined based on value-inuse calculations. These calculations use cash flow projections of five years based on financial business plans and budgets approved by management. The projections include assumptions concerning revenue growth and expected operating costs overthe next five years plus a continuous period. Average revenue growth is projected at 8.6 % and operating cost were estimatedbased on the experience of management. The pretax discount rate used within these cash flow calculations is 11.9 % (2019/20
12.9 %) and is based on the weighted average cost of capital of a peer group. The carrying value of the cash-generating unit including goodwill was compared to the value in use and no impairment was found to be present for the year ended 31 March 2021.

11.

Other noncurrent assets
31.3.2021

in CHF thousands

31.3.2020

Loan to personnel

251

272

Deposits & guarantees

597

751

Total

848

1’023

LEM Financial Report 20 | 21

Page 25

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

12.

14.

Accounts payable
31.3.2021

31.3.2020

Total accounts payable – trade

22’52719’000

Other payables

4’565

3’116

Total

27’092

22’116in CHF thousands

13.

Provisions
Warranty andcustomer claims

Litigations

Other

Total

2’575

198

985

3’758

715

0

517

1’232

Unused amounts reversed

(816)

(198)

(780)

(1’794)

Utilized during the year

(620)

0

0

(620)

Foreign exchange effect

(132)

0

(9)

(141)

Balance as per 31 March 2020

1’723

0

713

2’436

In CHF thousands

Balance as per 1 April 2019
Additional provisions

Of which current

2’288

Of which noncurrent

148

Balance as per 1 April 2020

1’723

0

713

2’436

Additional provisions

1’570

359

266

2’195

Unused amounts reversed

(539)

0

(616)

(1’825)

Utilized during the year

(1’209)

0

(65)

(604)

Foreign exchange effect

49

0

24

73

1’594

359

322

2’275

Balance as per 31 March 2021
Of which current

889

Of which noncurrent

1’386

Other liabilities
31.3.2021

31.3.2020

Post-employment benefit plans

4’655

6’562

Derivative financial instruments823

0

Other liabilities

2’978

1’650

Total

8’456

8’212

In CHF thousands

Of which current

2’281

916

Of which noncurrent

6’175

7’297

The decrease of the post-employment benefit plan liability is mainly linked to the increase in the DBO more than compensatedby the increase in the fair-value of plan assets, as elaborated in note 23.

15. Equity
Share capital
The nominal share capital of CHF 570’000 comprises 1’140’000 registered shares, each with a nominal value of CHF 0.50.
There is neither authorized nor conditional share capital outstanding.
Investments in shares of LEM HOLDING SA held by the Group are classified as treasury shares and are accounted for at historicalcost. Treasury shares are not entitled to dividends.
Movement of treasury shares
NumberIn number of shares, in CHF

Litigations
Despite the care that LEM applies in the separation process with personnel, such separation may result in legal conflicts. The
Group reviews all legal claims and takes appropriate actions to support its position and management estimates the reasonablerisk to be provided for.

Page 26

Low

Value
in CHF thousands

Value 1 April 2019

795
6’773

1’500.27

1’302.78

902.11

8’824(7’012)

1’520.00

1’315.69

917.47(9’226)

7’846

1’940.38

1’595.19

1’002.10

12’516(7’794)

1’970.22

1’532.01

1’011.32(11’940)

Sales at cost
Value 31 March 2020

983

556

Purchases at cost
Value 31 March 2021

608

581

1’156

In CHF

Ordinary dividend per share 2019/20

40.00

Ordinary dividend per share 2020/21

42.00

A dividend of CHF 42 per share will be proposed by the Board of Directors to the Annual General Meeting of Shareholders of
the Group on 24 June 2021. The expected payout for dividends amounts to CHF 47.9 million.

The Company operates in multiple jurisdictions with complex legal and tax regulatory environments. In the frame of the continuous improvement of its processes and systems, LEM has reviewed the consumption taxes in several countries. It has appearedthat some LEM’s subsidiaries may not have been fully compliant with their local consumption tax regulations. As a consequence, LEM has estimated consumption tax provisions according to Management’s best judgment. Some of these positions
are inherently uncertain and include the interpretation of local regulations applied to complex transactions.

LEM Financial Report 20 | 21

Price per share in CHF
Average

Purchases at cost

Sales at cost

Warranty and customer claims
Provisions for warranty and customer claims have been estimated based on past experience and the risk assessment of management. The warranty provision is expected to be used over the next five years.

High

LEM Financial Report 20 | 21

Page 27

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

16.

20. Income taxes, deferred tax assets and liabilities
The Group operates in multiple jurisdictions with complex legal and tax regulatory environments. In certain of these jurisdictions, the Group has taken income tax positions that management believes are supportable and are intended to withstandchallenges by tax authorities. Some of these positions are inherently uncertain and include those relating to transfer pricing
matters and the interpretation of income tax laws applied to complex transactions. The Company periodically reassesses its tax
positions. Changes to the financial statement recognition, measurement, and disclosure of tax positions are based on management’s best judgment given any changes in the facts, circumstances, information available and applicable tax laws. Considering
all available information and the history of resolving income tax uncertainties, the Group believes that the ultimate resolution ofsuch matters will not have a material effect on its financial statements.
Differences between the final tax outcome and the amounts that were initially recorded impact the income and deferred taxes
in the period in which such determinations are made. The Group calculates its expected average tax rate as a weighted averageof the tax rates in the tax jurisdictions in which the Group operates.

Staff costs
Notes

2020/212019/20

Production(22’225)(24’958)

Sales(18’488)(18’599)

Administration(14’103)(14’116)

Research and development(19’538)(18’993)

Total(74’354)(76’667)

Salaries and wages(70’681)(72’638)

Temporary employee costs(1’235)(1’154)(2’231)(2’639)In CHF thousands

Cost of defined benefit plans

23.1

Cost of defined contribution plans

(207)

(236)

(74’354)(76’667)

31.3.2021

31.3.2020

Permanent employees

1’297

1’376

Temporary employees

135

112

Apprentices

16

9

1’448

1’497

Total
Number of employees at the end of the financial year

Total

LEM has taken the decision to repatriate all available dividends from its subsidiaries in the foreseeable future. Unrecoverable
withholding taxes are considered part of the expected tax rate. Deferred income tax liabilities have been established for unrecoverable withholding taxes that would be payable on the unremitted earnings of foreign subsidiaries.
2020/212019/20

In CHF thousands

In 2019/20, a restructuring plan has been decided to change roles of our headquarter and leading to a one-off charge of
CHF 1.5 million included in salaries and wages.
17.

Financial expenses
2020/212019/20

Interest expenses

(381)

(388)

Other financial expenses

(129)

(117)

Total

(510)

(505)

Financial income(41’199)493

45’611

Previously unrecognized deferred tax asset used to reduce deferred tax expense

0

488

314

(112)

Adjustment recognized in the period for current tax of prior year
Total

2020/212019/20

Interest income on cash

148

191

Total

148

191

Exchange effect

In CHF thousands

270
5’059

The tax expense relating to components of other comprehensive income amounts to CHF 710 thousand for the year 2020/21(tax income of CHF 882 thousand in 2019/20).

2020/212019/20838(2’775)(1’133)2020/212019/20

Group’s average expected income tax rate

13.7

15.8

Group’s average expected withholding tax rate

2.2

1.0

Group’s average expected tax rate

15.9

16.8

0.5

0.7

In %

Tax effect ofPermanent differences

Exchange gains / (losses)
Fair value revaluation on derivatives

Changes in tax rates on deferred taxes

(0.5)

0.4

488

Adjustment in respect of previous periods’ income tax

(1.3)

(0.5)

Recognition of previously unrecorded tax losses

Gains / (losses) on derivatives 1

646

(93)

Total

351

(2’379)1 Position includes cost of derivative hedging

0.0

(0.9)

Tax benefit from usufruct transaction / Group IP transaction(5.8)(25.2)

Other differences

(0.1)

(0.4)

Group’s effective tax rate

8.7

(9.1)

The 2020/21, the exchange effect is mainly driven by the foreign exchange gain linked to EUR revaluation.

LEM Financial Report 20 | 21786
(5’288)The Group’s effective tax rate differs from the Group’s average expected tax rate as follows:

In CHF thousands

19.

(6’881)

Deferred taxes relating to the origination and reversal of temporary differences
Deferred tax income/(expense) resulting from reduction in tax rates

In CHF thousands

18.

Current income taxes

Page 28

LEM Financial Report 20 | 21

Page 29

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

In 2020/21, LEM HOLDING SA sold the usufruct of the trademark license to LEM International SA which conducted to a positive
impact on effective tax rate of around CHF 3.5 million.
Last year, the Group’s effective tax rate was negative reflecting a non-recurring positive tax impact of CHF 14.0 million from thesale of technical intellectual property from LEM Intellectual Property SA based in Fribourg to LEM International SA based in
Geneva and to LEM Electronics China Co. Ltd.
This transaction generated additional current income taxes of CHF 34.2m in LEM Intellectual Property SA and a deferred tax
income of CHF 48.2m in both LEM International SA and LEM Electronics China Co. Ltd.

At 31 March 2021, the unrecognized losses carried forward are the following:

Deferred tax assets and liabilities
Deferred taxes have been calculated on the following balance sheet positions:Asset

31.3.2021

31.3.2020

In the next 10 years

0

0

Total

0

0

2020/212019/20

In CHF thousands

21.

31.3.2021
In CHF thousands

Unused tax loss carry-forwards not recognized in the balance sheet expire

Earnings per share

31.3.2020
Liability

Asset

Liability

Basic and diluted earnings per share
Net profit for the year attributable to LEM shareholders – in CHF thousands

Assets60’038(2’107)58’199(1’763)55’59760’693

Ordinary number of shares at the beginning of the year

1’140’000

1’140’000
1’140’000

107

(93)

75

(69)

Weighted average number of ordinary shares

1’140’000

1’212

(702)

913

(481)

Weighted average number of treasury shares

479

690

953

(747)

1’157

(678)

Weighted average number of shares outstanding

1’139’520

1’139’310

Intangible assets

55’902(45)

55’478(26)

Earnings per share – basic and diluted in CHF

48.79

53.27

Tax losses carried forward

1’857

0

577

0

7

(520)

0

(509)

1’751

(3’350)

1’776(2’955)0Accounts receivable
Inventories
Property, plant and equipment

Other assets
Liabilities
Provisions
Others

125

0

206

1’626

(11)

1’570

0

(3’339)0(2’955)(4’718)

Withholding tax on dividends
Gross deferred taxes

61’789(5’457)

59’974

Offsetting(2’048)2’048(1’698)

1’698

Net deferred taxes

59’741(3’409)58’277(3’020)22. Related parties
Related parties are the Board of Directors and the Executive Managers as defined in the Corporate Governance guidelines.
The compensation to the Board of Directors is paid as a fixed fee in cash. The compensation for the Executive Management includes base salary, a performance-related bonus (LEM Incentive System), bonus and post-employment benefits.
In 2020/21 and 2019/20, no termination benefits have been paid. The base salary is the employee’s compensation before
deduction of the employee’s social security contributions. Bonus payments are made in cash.
Compensation of the Board of Directors
2020/21

In CHF thousands

The balance sheet contains the following:
31.3.2021

31.3.2020

Deferred tax assets

59’74158’277

Deferred tax liabilities(3’409)(3’020)Net assets / (liabilities)

56’33255’256

LEM Group has CHF 1’857 thousand (CHF 557 thousand in 2019/20) of deferred tax assets on tax losses. The Group expects
that the related subsidiaries will be able to fully use the tax losses against future taxable profit. In 2019/20, the deferred tax
assets of CHF 58.3m was mainly linked to the deferred tax asset of CHF 44.2m booked in relation with the technical intellectual property sale referred above.

LEM Financial Report 20 | 21

Page 30

2019/20

Annual fees

(870)

(870)

Total

(870)

(870)

2020/212019/20

Base salary(1’690)(1’254)Bonus(1’435)(1’089)Compensation of the Executive Management
In CHF thousands

Company’s contribution to pension fundTotal

LEM Financial Report 20 | 21

Page 31

(165)

(129)

(3’290)(2’473)

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

Ilan Cohen was President of Servotronix Motion Control Ltd until end of 2019, which has bought transducers for CHF 968 thousand in 2019/20, including purchases done by its subsidiaries and subcontractors, from LEM Group at market price. No othermember of the Board of Directors has any significant business connection with LEM Group.

In CHF thousands

For details on the compensation of the Board of Directors and of the Executive Management, please refer to the compensation
report. Also, see Significant Accounting Principles 2.15 Employee benefits.

31.3.2021

31.3.2020
42’088Fair value of plan assets at year-end

44’323

Defined benefit obligations at year-end

48’427

47’838Funded status (Net (liabilities)/assets in the balance sheet)(4’104)(5’750)2020/212019/20

LEM expects to contribute CHF 2’335 thousand to its defined benefit plan in 2021/22.
23.1 Cost of defined benefit plans

23. Retirement benefit obligations

In CHF thousands

The Group operates a defined benefit plan for all its employees in Switzerland with a collective foundation.

Current service cost

2’650

3’049

Past service cost

(441)

(421)

This foundation is a separate legal entity which is not part of the Group. It is managed by a board of trustees having equal representation of employees and employers of the affiliated companies. It is supervised by the supervisory authority and complies
with the requirements of Swiss pension law. The company pays contributions that are based on a percentage of the insured
salary under the Swiss law. According to Swiss law, the pension plan qualifies as a defined benefit plan under IAS 19 due to thevarious benefits guaranteed according to the law.
The plan is funded by contributions from both employer and employees.
The plan participants are insured against the financial consequences of old age, disability and death. The retirement benefit isbased on a notional individual savings account converted at retirement into a fixed pension benefit.

Net interest (income) / cost
Total pension expenses recorded in consolidated income statement

11

2’231

2’639

Costs related to the pension plan were charged to the different functional departments based on salary costs.
Past service costs result from a change in conversion rate.
23.2 Remeasurements of employee benefits
In CHF thousands

Experience adjustments on defined benefit obligation

The assets of the foundation are invested into a diversified portfolio. Death-in service and disability benefits are insured withan insurance company. The pension plan does not expose the affiliated companies to any additional unusual risks not foreseenby the law. No curtailments or settlements occurred in 2020/21.

22

2020/212019/20

3’510

2’048

Return on plan assets excluding interests(5’292)

1’460

Total remeasurements recorded in other comprehensive income(1’782)

3’508

31.3.2021

31.3.202023.3 Change in fair value of plan assets
The funded status increase of CHF +1.6m is the result of the assumptions and demographic changes generating an increaseof the DBO of CHF 3.5m and an increase in the fair value of assets of CHF 5.3m reflecting a positive return in the financial year
2020/21. The following main assumptions have been applied:– discount rate from 0.6 % to 0.3 %;– interests credited on savings account remains stable at 1 %;– salary increase rate remains stable at 1 %.
Applying the rules of IAS 19, adjustment from actuarial assumptions have been accounted for in other comprehensive income.

In CHF thousands

Fair value of plan assets as per beginning of year

42’08842’691Return on plan assets excluding interest income

5’292(1’460)Interest income on plan assets
Employer’s contributions
Employees’ contributions

Page 32

256
2’262

1’855

1’927

Benefits paid

(7’267)(3’588)Fair value of plan assets as per end of year

44’32342’088The subsidiaries abroad sponsor either defined contribution plans or defined benefit plans based on local laws and regulations.
A former employee in Germany benefits from a defined benefit obligation amounting to CHF 347 thousand at 31.3.2021 (CHF
373 thousand in 31.3.2020). Other subsidiaries’ defined benefit obligations in Japan and Bulgaria amount to CHF 202 thousandat 31.3.2021 (CHF 439 thousand in 31.3.2020).

LEM Financial Report 20 | 21

261
2’094

LEM Financial Report 20 | 21

Page 33

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

23.4 Change in present value of defined benefit obligation

Sensitivities of significant actuarial assumptions
The sensitivity analysis is based on reasonable possible changes as of the end of the year 2020/21. Each change in a significant assumption was analyzed separately as part of the test.

31.3.2021

31.3.2020

Defined benefit obligation per beginning of year

47’83844’556

Current service cost

2’650

3’049

Past service cost

(441)

(421)

Employees’ contributions

1’855

1’927

282

267

In CHF thousands

Interest cost
Actual (gains) / losses

3’510

2’048

due to changes in assumptions

2’643

1’468

due to demographic changes

867

580

Benefits paid

(7’267)(3’588)

Defined benefit obligation per end of year

48’427

47’838The weighted average duration of the Defined Benefit Obligation (DBO) at the end of the current fiscal year is 19 years.
Past service costs result from a change in conversion rate.

2019/20

Increase by 0.25 %(2’190)(2’152)

Decrease by 0.25 %

2’355

2’312

Discount rate

Salary increase rate
Increase by 0.25 %

522

683

Decrease by 0.25 %

(506)

(673)

In CHF thousands

Major categories of plan assets as a percentage of the fair value of total plan assets
Long-term target

2020/212019/20in 1 year

1’664

in 2 years

1’562

in 3 years

1’649

in 4 years

1’652

Equity securities

36.0 %

37.5 %

36.0 %

Debt securities

34.0 %

31.0 %

33.0 %

Real estate25.0 %

25.3 %

27.0 %Cash and other investments

2020/21

DBO increase / DBO (decrease) – In CHF thousands

23.7 Maturity structure of pension obligation
The following main cash outflows are expected in future periods:

23.5 Asset allocation of investments

In %The sensitivity of the DBO to changes in the main actuarial assumptions is as follows::

5.0 %

6.2 %

4.0 %

100.0 %

100.0 %

100.0 %

Strategic pension plan allocations are determined by the objective to achieve a return on investment which, together with thecontribution paid, is sufficient to maintain reasonable control over the various funding risks of the plans. Estimated returns on
assets are determined based on the asset allocation and are reviewed periodically. A temporary deviation from policy targets
is allowed.

in 5 years

1’735

in 6 to 10 years

10’47024. Contingent liabilities
The Group is from time to time impacted by changing political, legislative, fiscal and regulatory environments, including thoserelating to environmental protection. The frequency and effects on future operations and earnings are unpredictable and are
only partly covered by insurance policies. For the years 2019/20 and 2020/21, there is no material contingent liability from a
consolidated point of view.

Cash as well as most equity and debt securities have a quoted market price in an active market (level 1 of fair value hierarchy).
Other assets including real estate and other investments do not have a quoted market price (level 3 of fair value hierarchy).
23.6 Actuarial assumptions
2020/212019/20

Discount rate

0.30 %

0.60 %

Salary increases

1.00 %

1.00 %In %The present value of the defined benefit obligation is determined annually by independent actuaries using the projected unit
credit method. Actuarial assumptions are required for this purpose.

LEM Financial Report 20 | 21

Page 34

LEM Financial Report 20 | 21

Page 35

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

25. Financial risk management objectives and policies
The group classifies its financial assets and liabilities in the following categories as per IFRS 7:

Management assessed that fair value levels of all financial assets and liabilities approximate their book value.
The Group enters into derivative transactions such as forward contracts to hedge the USD and EUR risks.
The purpose of these currency hedges is to manage the currency risks arising from the Group’s operations.

Financial assets
31.3.2021
Book value

31.3.2020
Book value

Amortized
cost

Cash and cash equivalents

22’41819’243

X

Accounts receivable

72’25958’256X

10320

In CHF thousands

Derivative financial instruments – current

X

Other current financial assets

94

13

X

Other noncurrent financial assets

848

1’023

X

95’62978’855Total

At fair value
through
profit andloss

Financial liabilities
31.3.2021
Book value

31.3.2020
Book value

Accounts payable

27’092

22’116

X

Accrued expenses

28’85225’331X

In CHF thousands

Derivative financial instruments – current
Other current financial liabilities
Other noncurrent financial liabilities
Total

Other financial liabilities

823

0

24’000

9’000

X

0

0

X

80’767

56’446

At fair value
through
profit andloss

X

1.4.2019

In CHF thousands

Cash flows
Inflow

Cash flows(Outflow)

Non-cash
impactFair values
changes andOthers

31.3.2020

Interest-bearing loans and borrowings

8’000

72’500(71’500)

0

9’000

Total

8’000

72’500(71’500)

(0)

9’000

Cash impact

Non-cash
impact

1.4.2020

In CHF thousands

Cash flows
Inflow

Cash flows(Outflow)

Fair values
changes andOthers

9’000

106’000(91’000)

0

24’000

Total

9’000

106’000(91’000)

0

24’000Page 36

The Group’s net financial liabilities at fair value amount to CHF 813 thousand per 31 March 2021 (financial assets of CHF 320
thousand per 31 March 2020), all classified under level 2.
During the two last reporting periods, there were no transfers between Level 1 and Level 2 fair value measurements, and notransfers into and out of Level 3 fair value measurements.

Sensitivity analysis for currency risk
The sensitivity analysis is performed per 31 March 2021 with a 5% change in the USD, EUR, JPY, CNY and GBP with all othervariables held constant of the Group’s profit before tax (due to the changes in the fair value of the monetary assets and liabilities) and the Group’s equity. The sensitivity analysis performed for the financial year shows an impact of CHF ±1’015 thousand
for a ±5% EUR rate change (CHF ±989 thousand per 31 March 2020), of CHF ±452 thousand for a ±5% USD rate change (CHF
±557 thousand per 31 March 2020),of CHF ±1’582 thousand for a ±5% CNY rate change (CHF ±1’053 thousand per 31 March
2020) and of CHF ±133 thousand for a ±5% JPY rate change (CHF ±153 thousand per 31 March 2020). For other currencies,
there is no significant impact. There is no significant impact on the Group’s equity.

31.3.2021

Interest-bearing loans and borrowings

LEM Financial Report 20 | 21

Fair value hierarchy
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e.,
as prices) or indirectly (i.e., derived from prices).
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

Foreign currency risk
The Group operates globally and is exposed to various foreign exchange risks primarily to the USD, EUR, JPY, CNY and GBP.
The Group generally seeks to reduce these risks by optimizing its natural hedging strategy (cash inflows and outflows in a specific currency should be balanced as far as possible). The Group’s policy states that 100 % of LEM’s net exposure for the maincurrencies EUR, USD and JPY is to be hedged on a rolling 12-month basis. Currency risks also arise from translation differencesthat are not hedged by the Group when preparing the consolidated financial statements in CHF. The foreign exchange translation is excluded from the calculation of the sensitivity analysis for currency risk below.

Book values approximate fair values except for derivative financial instruments which are disclosed at fair value.
Fair value of the lease is amounting to CHF 7'624 thousand in 2020/21 (CHF 8'070 thousand in 2019/20)
Cash impact

It is the Group’s policy that no derivatives for speculative purposes shall be entered into.
The main risks arising from the Group’s financial instruments are foreign currency risks and credit risks whereas the others areof minor or no impact.
The Board of Directors reviews and agrees policies for managing each of those risks.

LEM Financial Report 20 | 21

Page 37

Notes to the consolidated
financial statements

Notes to the consolidated
financial statements

Credit risk
Credit risk is the risk that a financial loss occurs if a counterparty is unable or unwilling to fulfill its contractual payment obligation. The Group trades with recognized and creditworthy parties. Accounts receivable are monitored on a monthly basis.
It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures.
In case of a deterioration of the credit history, advance payments are required. The Group’s exposure to bad debts is not significant. The maximum exposure is the carrying amount as disclosed in note 5. There are no significant concentrations of credit
risk within the Group. With respect to credit risk arising from the other financial assets in the Group which comprises cash andcash equivalents, other current assets and certain derivative instruments, the Group’s exposure to credit risks arises from apotential default of the counterparty, with a maximum exposure equal to the carrying amount of these positions.

26. Scope of consolidation

Liquidity risk
The Group operates a cash-pooling agreement in which cash targets are set for all the subsidiaries. Cash surplus / shortages
are balanced in intercompany loans on a monthly basis. Group capital requirements are managed centrally by corporate finance. In case liquidity is required, bank loans are either taken-up centrally and passed on as an intercompany loan, or provided
directly by the bank to the subsidiary with a reduction of the Group’s total credit line. The total leverage of the Group is low, thefinancial liabilities mature in less than one year based on the carrying value of borrowings reflected in the financial statements.

Full consolidation

Country

Currency

Share capital

Ownership

EuropeLEM Europe GmbHGermany

EUR

75’000100 %LEM Holding SA

Switzerland

CHF

570’000

100 %LEM International SA

Switzerland

CHF

100’000

100 %LEM Intellectual Property SA (“in liquidation”)

Switzerland

CHF

300’000

100 %LEM Tech France SAS

FranceEUR

50’000100 %LEM Bulgaria EOOD

Bulgaria

BGN

1’971’000

100 %LEM Russia Ltd

RussiaRUB

16’400’000

100 %LEM Management Services SARL

Switzerland

CHF

20’000100 %LEM Advisory Services SA

Switzerland

CHF

100’000

100 %

USA

USD

150’000

100 %LEM Electronics (China) Co. Ltd

China

CNY

204’495’594

100 %LEM Japan KK

Japan

JPY

16’000’000

100 %Malaysia

MYR

200’000

100 %North America
LEM USA Inc.
Asia

31.3.2021
Book value

In CHF thousands

Less than
one yearOver oneyear

31.3.2020
Book valueLess than
one yearAccounts payable

27’09227’092

22’11622’116

Accrued expenses

28’852

28’85225’33125’331

Derivative financial instruments – current
Lease liabilties

823

823

0

0

3’458

3’789

1’629

2’392

Noncurrent lease liabilties

3’905

0

Other current financial liabilities

24’00024’000Total

88’13084’556

3’836
3’836

4’514

0

9’000

9’000

62’59058’839Over oneyear

LEM Malaysia SDN, BHD

27. Changes in scope of consolidation
In 2020/21, there were no changes in the scope of consolidation.
5’678
5’678

28. Events after the balance sheet date
There were no events subsequent to the balance sheet date that require adjustment to or disclosure in the financial statements.

Interest rate risk
The Group’s exposure to the risk of changes in market interest rates with the current financial leverage is low. Per 31 March
2021, the bank credit line amounts to CHF 24 million.
Capital management
The primary objective of the Group’s capital management is to ensure that it maintains a healthy and stable equity ratio in order
to secure the confidence of shareholders and investors, creditors and other market players and to strengthen the future development of the Group’s business activities.
The Group manages its capital structure and makes adjustments if required by economic conditions.
LEM targets a payout ratio significantly above 50 % of the consolidated net profit for the year.
However, it may diverge from this policy due to economic prospects or on the grounds of planned future investment activities.

LEM Financial Report 20 | 21

Page 38

LEM Financial Report 20 | 21

Page 39

Auditor’s report

Auditor’s report

Statutory auditor’s report on the audit of the consolidated financial statements

Uncertainties regarding Income taxes and transfer pricing

OpinionWe have audited the consolidated financial statements of LEM Holding SA and its subsidiaries (the Group), which
comprise the consolidated statement of financial position as at 31 March 2021 and the consolidated statement ofincome, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including asummary of significant accounting policies.

Area of focus
The Group operates in multiple jurisdictions with complex legal and tax regulatory environment that are changing
and expose the Group to country specific tax risks which could result in potential material amounts payable.

In our opinion, the consolidated financial statements (pages 5 to 39) give a true and fair view of the consolidated
financial position of the Group as at 31 March 2021, and its consolidated financial performance and its consolidated
cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and comply
with Swiss law.
Basis for opinion
We conducted our audit in accordance with Swiss law, International Standards on Auditing (ISAs) and Swiss AuditingStandards. Our responsibilities under those provisions and standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with the provisions of Swiss law and the requirements of the Swiss
audit profession, as well the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Code) and we have fulfilled
our other ethical responsibilities in accordance with these requirements.

Management monitors these tax risks primarily at corporate level, including the significant level of estimations andjudgments made with respect to the likelihood and magnitude of these risks. In certain of these jurisdictions, theGroup has taken tax position on income taxes and transfer pricing that management believes are supportable. Dueto the significance of the deferred tax balances and other tax positions and the judgment involved in determining
these, this matter was considered significant to our audit. Refer to note 20 to the consolidated financial statements for further information.
Our audit response
Our procedures included, amongst others, assessing the tax rules in the various jurisdictions in which the Company operates and assessing management’s assumptions and estimates in relation to uncertain tax positions, current
income tax and deferred taxes.
We involved our tax specialists to assist in assessing the Company’s tax methodologies, tax rules and analyzing theunderlying key assumptions, including the advice received by management from external parties to support theirposition. We audited the current year tax provision, the Company’s reconciliation of book to taxable income, as
well as the deferred tax balances and evaluated whether the assumptions applied by management on the recoverability of deferred tax assets are consistent with its budget and forecasts. Our audit procedures did not lead to any
reservations regarding income taxes and transfer pricing.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of theconsolidated financial statements of the current period. These matters were addressed in the context of our auditof the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide aseparate opinion on these matters. For each matter below, our description of how our audit addressed the matter isprovided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report, including in relation to these matters. Accordingly, our audit included theperformance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address
the matters below, provide the basis for our audit opinion on the consolidated financial statements.

LEM Financial Report 20 | 21

Page 40

Additions to and transfer of production lines
Area of focus
The Group manufactures its production lines centrally and sells them to its production entities abroad, namely to
Bulgaria and China that produce transducers in those jurisdictions. Production costs are incurred in Switzerland
and allocated to the individual machines and consist of various elements including raw material, components andlabor cost. Production lines are then sold to the subsidiaries mentioned above including a margin. The unrealized
profit is eliminated at group level incl. the effect of accumulated prior-year and current-year depreciation and foreign currency translation effects on all elements. Additions to and transfer of production lines are complex due tothe system used to capitalize such production lines and the multiple elements of unrealized profit that have to beeliminated at group level. Refer to note 8 to the consolidated financial statements for further information.

LEM Financial Report 20 | 21

Page 41

Auditor’s report

Auditor’s report

Our audit response
Our procedures included, amongst others, assessing production cost of the Group’s production lines in Switzerland on a sample basis incl. those in process of being produced. Moreover, we analyzed whether
production lines were recorded at local cost in the production entities. We tested the profit margin of the individual production lines sold to the foreign production entities and recalculated the realized margin in Switzerland.
We obtained supporting documents from the Group’s finance team and assessed whether the realized margin waseliminated including the effect of prior year margins and the related effect on depreciation in the current year. We
also analyzed the translation effect on the profit and depreciation. Our audit procedures did not lead to any reservations regarding income taxes and transfer pricing.

A further description of our responsibilities for the audit of the consolidated financial statements is located at
the website of EXPERTsuisse: http://www.expertsuisse.ch/en/audit-report-for-public-companies. This description
forms part of our auditor’s report.
Report on other legal and regulatory requirements
In accordance with article 728a para. 1 item 3 CO and the Swiss Auditing Standard 890, we confirm that an internal
control system exists, which has been designed for the preparation of consolidated financial statements according
to the instructions of the Board of Directors.
We recommend that the consolidated financial statements submitted to you be approved.

Other information in the annual report
The Board of Directors is responsible for the other information in the annual report. The other information comprises all information included in the annual report, but does not include the consolidated financial statements, thestand-alone financial statements and our auditor’s reports thereon.

To the General Meeting of LEM Holding SA, Plan-les-Ouates
Geneva, 12 May 2021
Ernst & Young Ltd

Our opinion on the consolidated financial statements does not cover the other information in the annual report and
we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information in the annual report and, in doing so, consider whether the other information is materially inconsistent withthe consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact. We have nothing to report in this regard.

Roland Ruprecht
Licensed audit expert(Auditor in charge)

Victoria Napoly
Licensed audit expert

LEM Financial Report 20 | 21

Page 43

Responsibility of the Board of Directors for the consolidated financial statements
The Board of Directors is responsible for the preparation of the consolidated financial statements that give a trueand fair view in accordance with IFRS and the provisions of Swiss law, and for such internal control as the Board of
Directors determines is necessary to enable the preparation of consolidated financial statements that are free frommaterial misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless the Board of Directors either intends to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with Swiss law, ISAs and Swiss Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

LEM Financial Report 20 | 21

Page 42Corporate governancereportCorporate governancereport

The following information complies with the Corporate Governance Directive of the SIX Swiss Exchange (SIX) and the disclosure rules of the Swiss Code of Obligations. In order to enhance the clarity of this chapter, reference is made to otherparts of this Financial Report and our website (www.lem.com). Key elements are contained in the Articles of Incorporation.

The notifications which have been sent to the Company and the disclosure office of the SIX Swiss Exchange AG during thefinancial year pursuant to article 120 of the Federal Act on Financial Market Infrastructures and Market Conduct in Securities
and Derivatives Trading may be viewed via the search function on https://www.six-exchange-regulation.com/en/home/publications/significant-shareholders.html/.

1.
Group structure and shareholders
Group structure
LEM HOLDING SA is domiciled at Chemin des Aulx 8, CH–1228 Plan-les-Ouates. LEM’s registered shares are listed on the main
segment of the SIX Swiss Exchange (LEHN, security no. 2 242 762; ISIN 0022427626). On 31 March 2021, the market capitalization was CHF 2’082 million. LEM Group is structured into Industry and Automotive segments. Appropriate segment reporting
pursuant to IFRS is contained in note 3 of the consolidated financial statements. All companies in LEM Group are listed under“Scope of consolidation” in note 26 of the consolidated financial statements, with their respective company names, registeredoffices, share capitals and the relevant percentages of shares held. There are no other listed companies in the scope of consolidation.
Significant shareholders
The following shareholders held 3 % or more of the share capital and voting rights:

31.3.2021

The trading of LEM shares by both Board of Directors and Executive Management has to respect LEM’s disclosure and insider
trading policy as well as all applicable rules and legislation.
Cross-shareholdings
LEM has no cross-shareholdings with other joint-stock companies.

2.
Capital structure Capital and shares
The nominal value of the share capital of LEM HOLDING SA is CHF 570’000, which is divided into 1’140’000 fully paid-up registered shares with a par value of CHF 0.50 each. No changes of the total share capital have occurred during the last 3 years.
There are no shares with preferred voting rights. All shareholders are entitled to the same dividends. There are no restrictions
on the transfer of shares. In order to be registered in the share register, each shareholder shall declare that he/she holds theshares for their own account.

31.3.2020

SharesIn %SharesIn %On 31 March 2021, LEM HOLDING SA held 608 treasury shares.

Werner O. Weber and Ueli Wampfler, in Zollikon/Wollerau,
Switzerland, through WEMACO Invest AG and Voltano AG
in Cham, Switzerland582’600

51.1 %

582’700

51.1 %

Ruth Wertheimer, in Kfar Shmaryahu, Israel, through7-Industries Holding B.V., in Amsterdam, Netherlands

8.8 %Authorized and conditional capital
There is no authorized or conditional capital, nor are there any profit-sharing certificates or participation in certificates or any
convertible bonds outstanding.

In number of shares, per cent of shareholding

36’381

3.2 %100’081

Capital Group Companies Ltd., Los Angeles, U.S.A.

n.a.

3 %–5 %1

n.a.

n.a.

Invesco Ltd., Atlanta, U.S.A.

n.a.

< 3.0 %2

36’883

3.2 %36’2503.2 %36’0003.2 %J. Safra Sarasin Investmentfonds AG, Basel, Switzerland

1 Capital Group disclosed a 3.02 % stake as of 31 August 2020, but did not report the exact number of LEM shares per 31 March 2021
2 Invesco disclosed a 2.998 % stake as of 15 December 2020, but did not report the exact number of LEM shares per 31 March 2021

Shareholdings of
non-executive Directors

Shareholdings of
Executive Management
31.3.2021
Number ofshares held

31.3.2020
Number ofshares held

Andreas Hürlimann

1’001

1’001

François Gabella

600

600

Frank Rehfeld, CEO

00Ilan Cohen

300

300

Andrea Borla, CFO

0070’60070’700100

100

Ueli Wampfler
Ulrich Jakob Looser

0

0

Total

Werner C. Weber

72’60172’701LEM Financial Report 20 | 21

Page 44

31.3.2021
Number ofshares held

31.3.2020
Number ofshares held

Rodolphe Boschet, CHRO

00

Rebecca Cullinan, SVP Industry

00Rainer Bos, SVP Automotive

0

0

Total

0

0

3.
The Board of Directors’ election, terms of office and cross-involvement
The Board of Directors is comprised of at least three members who are individually elected at the Annual General Meeting fora mandate of one year, which is renewable up to an age limit of 70. The Board of Directors constitutes itself, except for the
Chairman of the Board of Directors and the members of the Compensation Committee who are elected by the Annual General
Meeting of Shareholders.
At the Annual General Meeting on 9 June 2020, Andreas Hürlimann, François Gabella, Ilan Cohen, Ueli Wampfler, Ulrich J. Looser and Werner C. Weber were re-elected as members of the Board of Directors. Andreas Hürlimann was re-elected as Chairmanof the Board of Directors. In addition, shareholders elected Andreas Hürlimann and Ulrich J. Looser to the Nomination & Compensation Committee (NCC). Ulrich J. Looser chairs the Committee.
All members of the Board of Directors have been non-executive. Only François Gabella had been part of the Executive Management of LEM before his election as member of the Board of Directors. No member of the Board of Directors has any significant
business connection with LEM Group.
The Board of Directors was comprised of the following members as of 31 March 2021:

LEM Financial Report 20 | 21

Page 45

Position
Chairman of the Board of Directors,
Chairman of the Strategy Committee,
Member of the Nomination andCompensation Committee
Entry
2011
– Since 2011, Entrepreneur

Nationality Swiss
Born in 1964

– 2005 – 2010, Managing Director,
Spencer Stuart, Zürich
– 1999 – 2005, Global Director of Industry
Practices and Member of the Executive
Board, Arthur D. Little Inc., Zürich,
Lisbon, London and Paris– Sobrado Software AG, Cham, Chairman of the Board of Directors– Sustainable Real Estate Investments SICAV, Zürich, Chairman of theBoard of Directors

Ulrich J. Looser– Steiner Investment Foundation, Zürich, Member of the Board ofTrustees

Nationality Swiss
Born in 1957

Education– M. Sc. Electrical Engineering, ETH Zürich, Switzerland

Position
Member of the Board of Directors,
Member of the Strategy Committee

Other notable activities

Entry
2018

– Optotune AG, Dietikon, Member of the Board of Directors– Since 2009, Berg Looser Rauber &Partner (BLR&Partners)– 2001 – 2009, Accenture, various
positions including Managing Director
Austria/Switzerland/Germany Management Consulting and Chairman Accenture
AG (Switzerland)– 1987 – 2001, McKinsey & Company, industry, energy, pharma and public sector
practices, partner election 1993

– Vice President of Swissmem, Zürich
– Economie Suisse, Member of the Board, Zürich
– Switzerland Global Enterprise, Zürich,Member of the Advisory Board– Kardex AG, Member of the Board of Directors– u-blox AG, Member of the Board of Directors– Bachofen Holding AG, Chairman of the Board of Directors– Economiesuisse, Member of the Board

Professional background– themissinglink ag, Cham, Member of the Board of Directors

Other notable activities– University of Zürich, Member of the University Council

Entry
2015

– Novo MOF AG, Villigen, Member of the Board of Directors– DAS Finance, University of Zürich, Switzerland– University Hospital Balgrist, Member of the Board– Swiss-American Chamber of Commerce– Swiss National Science Foundation, Member of the Executive
Committee of the Foundation Council (until 31 Dec 2020),
Member of the Foundation Council (ongoing)
Education– M.Sc. Physics, ETH Zürich, Switzerland– M.A. HSG, University of St. Gallen, Switzerland

Position
Member of the Board of Directors,
Chairman of the Audit and Risk Committee

Other notable activities

Entry
2007

– Merbag Holding AG (Merbag Group), Cham, Vice Chairman of theBoard of Directors

Professional background– Caspar Finanz AG (Traco Power Group), Baar, Member of the Boardof Directors– Swisa Holding AG (Swisa Group), Cham, Chairman of the Board of
Directors– 2006 – 2010, CEO, Tesa SA– Fischer Connectors SA, Saint-Prex,
Member of the Board of Directors– Since 2004, Founder and Senior Partner,
Wampfler & Partner AG, Zürich

– 2002 – 2006, SVP, Areva– Sonceboz SA, Sonceboz, Member of the Board of Directors– Voltano AG, Cham, Owner and Chairman of the Board of Directors– 1996 – 2002, Business Area Manager,
ABB Power Transformers– Sensirion AG, Stäfa, Member of the Board of Directors– 1998 – 2004, Director, STG Schweizerische Treuhandgesellschaft, Zürich
– 1974 – 1998, STG Coopers & Lybrand,
Zürich (Partner since 1991)– Lic. oec., University of Zürich, Switzerland

Position
Member of the Board of Directors,
Member of the Strategy Committee

Other notable activities– 2010 – 2018, CEO, LEM Group

Nationality Swiss
Born in 1958

– HMT Microelectronic AG, Biel/Bienne, Member of the Board of
Directors– 1990 – 1999, international business development, sales and management roles
with Siemens Schweiz AG, ABB Power
Generation AG and Oerlikon Aerospace
Inc., Zürich, Baden, Montréal

Professional background

François Gabella

Position
Member of the Board of Directors,
Chairman of the Nomination andCompensation Committee,
Member of the Audit and Risk Committee– Condis SA, Rossens, Member of the Board of Directors– ElectricFeel AG, Zürich, Member of the Board of Directors

Professional background

Andreas Hürlimann

Other notable activities– Nextlens AG, Dietikon, Member of the Board of Directors
Education

Ueli Wampfler
Nationality Swiss
Born in 1950

– Rebew AG, Zürich, Member of the Board of Directors
Education– Certified auditor– M. Sc. Microtechnics EPFL, Lausanne, Switzerland– MBA IMD, Lausanne, Switzerland

Position
Member of the Board of Directors

Other notable activities

Entry
2010

– EZReider, Israel, Member of the Board of Directors

Professional background– Since 2019, Chairman and CEO of Caja
Robotics– 2009 – 2019, President, Servotronix
Motion System Ltd.

Ilan Cohen
Nationality Israeli
Born in 1956

– 2008 – 2009, General Manager, Kollmorgen Industrial & Commercial Engineered
Solutions Ltd. (Danaher Group)– 1997 – 2008, President and CEO,Kollmorgen Servotronix Ltd.

– Caja Robotics, Israel, Chairman of the Board of Directors

Entry
2017

– Negba Houses for Children at Risk in Israel, Chairman of the Board
Education– Since 1998, weber schaub & partner ag,
Partner– MSEE, CALTECH Pasadena, USA– M.Sc. and BSEE Electro-mechanical engineer,
Ecole Polytechnique de Bruxelles, Belgium

Werner C. Weber
Nationality Swiss
Born in 1960

– Prior thereto in particular Freddy Burger
Management Group in Zürich as LegalCounsel and General Secretary, andPricewaterhouseCoopers AG in Zürich as
Legal and Tax Counsel– City Parkhaus Aktiengesellschaft, Zürich,Member of the Board of Directors– MedioSearch AG, Bern / SkySmile AG, Zürich,Member of the Board of Directors
Education– Dr. iur. University of Zürich, Switzerland– Mediator SBA, Zürich, Switzerland– 1983 – 1990, Associate professor,
University of Tel Aviv, Israel

Page 46– Schilthornbahn AG, Lauterbrunnen,
Member of the Board of Directors– Admitted as an attorney-at-law in Zürich, Switzerland– 1987, Founder, Servotronix Ltd.

LEM Financial Report 20 | 21

– weber schaub & partner ag, Zürich,Member of the Board of Directors– Arosa Bergbahnen AG, Arosa, Member of the Board of Directors

Professional background– Ph.D. Control System, Ecole Polytechnique de Bruxelles, Belgium– WEMACO Invest AG, Zug, Member of the Board of Directors

LEM Financial Report 20 | 21

Page 47

Corporate governancereportCorporate governancereportExternal mandates
Pursuant to Article 31 of the Articles of Incorporation, members of the Board of Directors may not hold more than ten additional
mandates of which no more than four may be in listed companies. The following mandates are not subject to the above limitations: (a) mandates in companies which are controlled by LEM or which control LEM; (b) up to five mandates held at the requestof LEM or companies controlled by it; and (c) up to six mandates in associations, charitable organizations, foundations, trusts
and employee welfare foundations. Mandates shall mean mandates in the supreme governing body of a legal entity, which is
required to be registered in the commercial register or a corresponding foreign register. Up to 20 mandates in different legal
entities which are under joint control or same beneficial ownership are deemed one mandate.

Information and control systems of the Board of Directors vis-à-vis Executive Management
The Board of Directors ensures that it receives sufficient information from the Management to perform its supervisory duty andto make the necessary decisions.
The Board of Directors obtains the information required to perform its duties through several means:– the Board of Directors receives monthly and quarterly reports on the current development of the business;– informal meetings and teleconferences are held as required between the Chairman and the CEO as well as between the
Chairman and individual members of the Board of Directors;– the Committees meet at regular intervals and exchange detailed information with the Executive Management;– the Board of Directors receives detailed information to each agenda item one week before the Board meeting;– each Executive Manager joins at least one but usually multiple Board sessions in any given year.

Internal organizational structure
The Board of Directors meets as often as necessary, but six annual meetings are planned in advance. In the completed financial
year, six full-day meetings were held. The meetings usually take place at the Company’s registered office in Plan-les-Ouates.
The Chairman, after consulting with the CEO and the Chairmen of the committees, determines the agenda for the Board meetings. The members of the Board of Directors can ask for additional items to be included on the agenda. They receive supporting
documents beforehand, allowing for a comprehensive preparation of the meeting. The CEO and CFO attend the meetings ofthe Board of Directors as non-voting guests. Depending on the topics, other members of Executive Management participate in
the meetings in order to respond to specific questions. Decisions can be taken by the Board of Directors if at least half of the
Directors are present, and a simple majority of them is sufficient. In the event of tie, the Chairman has the casting vote. Minutesof the meetings including decisions taken are prepared by the CFO and distributed to the members of the Board of Directors,
the CEO and the CFO.
The Board of Directors reviews its working procedures, the efficiency and effectiveness of its teamwork as well as its interaction with the Management of the Company on a regular basis. Regular feedback sessions at the end of a meeting provide
valuable inputs for the continuous improvement of the Board’s coherence and leadership.

Business risk management
In compliance with Swiss law, LEM is using a standardized procedure to analyze its business risks. LEM’s risk management
covers all types of risk: financial, operational and strategic – including the external business environment, compliance andreputational aspects.
The Executive Management conducts an annual risk analysis. The results and consecutive action plans are thereafter presented to and formally approved by the Board of Directors.
The risk management approach follows five steps: in a first step, potential hazards are evaluated and a consolidated list with
5 to 10 main hazards is set up. In a second step, each hazard is assessed by a product of probability and quantified impact.
Step two results in a risk map, which visualizes LEM’s potential risk environment. In step three, an action plan is put in place tomitigate the risks. The hazards thereafter are revalued a second time, taking into consideration the mitigation measures. In step
four, the action plan is validated and thereafter monitored on a bi-annual basis (step five).

Definition of areas of responsibility
The Board of Directors delegates the management of the Company to the CEO to the extent permitted by the Swiss Code ofObligations. The Board of Directors reviews and assesses at least on an annual basis and takes decisions in the following areas:– review and approval of the strategy, business plan, annual business objectives and budget for the LEM Group;– approval of creation/closing of any subsidiary and purchase/sale of any interest in any company or entry into any merger or
joint venture agreement;– appointment/dismissal of the Executive Management;– monitoring the ethical and legal behavior of LEM;
– review of human resources management, including employee satisfaction and management development and legal, intellectual property, social and environmental aspects.

Internal control system
In compliance with Swiss law, LEM has put in place an internal control system.

LEM Financial Report 20 | 21

LEM Financial Report 20 | 21

Page 48

Starting from the material positions in the annual financial results, the important underlying processes and process owners
have been identified. For each process, key risks that could lead to errors in the financial reporting have been identified. For
each key risk, key controls have been defined and responsibilities assigned to assure effective compliance and documentationof the key controls. The process has been presented to and approved by the Audit & Risk Committee.
Looking forward, the process owners will perform an annual process review whereby identified weaknesses shall be continuously improved and key risks and controls shall be updated. Based on the input of the process owners, the CFO prepares anannual report on the internal control system, which is presented to and discussed with the Audit & Risk Committee.

Page 49

Corporate governancereportCommittees
Three standing committees support the Board of Directors. They are comprised of at least two non-executive members of theBoard of Directors. They meet whenever necessary but at least twice a year.
– The primary objective of the Audit & Risk Committee (ARC) is to provide the Board of Directors with effective support in financial matters, in particular the selection and supervision of the external auditor, assessment of the effectiveness, complianceand clarity of the Group financial reporting and the assessment and preparation of the financial reports to the shareholders.
Furthermore, it reviews critical accounting policies, financial control mechanisms and compliance with corresponding laws
and regulations as well as the development and continuous improvement of the internal control system. If required, the external Group auditors are invited to participate at the meeting. The ARC prepares proposals to be decided by the Board of
Directors. In the completed financial year, three half-day meetings were held.
– The Nomination & Compensation Committee (NCC) deals with succession, recruitment and compensation of the membersof the Board of Directors and the Executive Management. It ensures and monitors the personnel development plan and adequate succession planning for the middle and top management. It supports the Board of Directors in establishing and reviewing the compensation strategy and guidelines and the performance objectives as well as in preparing the proposals to besubmitted to the General Meeting regarding the compensation of the Board of Directors and of the Executive Management. It
reviews and updates the compensation policy for the members of the Board of Directors and the Executive Management andthe performance-based compensation system for the Executive Management. The NCC prepares proposals to be decided
by the Board of Directors. In the completed financial year, five half-day meetings were held.
– The primary objective of the Strategy Committee (SC) is to assist the Board of Directors in fulfilling its duties with respect todetermining the Company’s strategy and the appropriate means to pursue it, including LEM’s organizational setup. As strategic work and its successful implementation is based upon coordinated and interlocking activities between Executive Management and the Board of Directors, the SC ensures close collaboration with the CEO and the Executive Management. The
SC prepares proposals to be decided by the Board of Directors. The Board of Directors may also decide to delegate membersof the SC to assist in steering longer-term strategic initiatives by joining the project steering committee. In the completed
financial year, two half-day meetings and three telephone conferences were held.

Frank Rehfeld

Andrea Borla

Rodolphe Boschet

Rebecca Cullinan

Rainer Bos

4.
Executive Management
The Executive Management was comprised of the following members as of 31 March 2021:

Frank Rehfeld
Nationality German
Born in 1968

Function
CEO

Previous companies and positions

With LEM since2016– 2009 – 2015, VP Drives, Brose China Co., Ltd.

– 2016 – 2018, SVP Industry, LEM Group– 2006 – 2009, Managing Director, Hella Shanghai Electronics Co., Ltd.
– 2004 – 2006, Siemens VDO China, Director Body/Chassis Electronics– 1996 – 2004, Siemens VDO Germany, Director R&D Body/Chassis Electronics
Education– Dipl. Eng. Electrical Engineering, Erlangen-Nuremberg, Germany

Andrea Borla
Nationality Swiss
Born in 1967

Function
CFO

Previous companies and positions

With LEM since2015– 2003 – 2007, Field Operations Manager, Schindler China– 2008 – 2015, CFO, Schindler France– 1999 – 2003, Area Controller, Schindler Asia Pacific– 1996 – 1999, Head of Group Consolidation, SAirGroup
Education– Ph.D., M.A. HSG, Finance and Accounting, St. Gallen, Switzerland

Rodolphe Boschet
Nationality French
Born in 1967

Function
CHRO

Previous companies and positions

With LEM since2020– 2016 – 2019, Senior Vice President HR & Communications, Beckman Coulter– 2019 – 2020, VP HR integration, Danaher– 2013 – 2016, Global Vice President HR & Communications, Radiometer– 2006 – 2013, Head of HR France, Europe, Chemistry Business Unit, Beckman Coulter– 2002 – 2006, HR Manager Europe, Datascope Corp
– 1997 – 2002, International HR Manager, Cartier
Education– Masters of Political Science, Paris Sorbonne, France– Masters in International Human Resources Management, ENS Cachan, France

Rebecca Cullinan
Nationality British
Born in 1970

Function
Senior Vice President
Industry

Previous companies and positions

With LEM since2019– 2015 – 2018, Managing Director, South East Asia, Valeo– 2018 – 2019, Managing Director, South Europe, Middle East & Africa,
Automotive Lighting/Magnetti Marelli– 2002 – 2015, Various Management Position, France, Valeo– 1998 – 2002, Senior Consultant, UK, IHS Global Insight
Education– MBA University of Westminster UK, BSc in Mechanical Engineering,
Jiangsu University China

Rainer Bos
Nationality German
Born in 1962

Function
Senior Vice President
Automotive

Previous companies and positions

With LEM since2015– 1991 – 1999, Key Account Manager, Continental-Teves KGaA

– 2011 – 2015, General Manager, Amphenol Tuchel Electronics GmbH
– 2001 – 2011, Business Unit Director, Delphi Deutschland GmbH
Education– Dipl. Eng. Industrial Engineering, TU Darmstadt, Germany

LEM Financial Report 20 | 21

Page 50LEM Financial Report 20 | 21

Page 51

Corporate governancereportCorporate governancereportNone of the members of the Executive Management have other activities in governing or supervisory bodies, any official functions or political posts nor any permanent management functions for important Swiss and foreign interest groups.

Dividend policy
LEM targets a payout ratio significantly above 50 % of the consolidated net profit for the year, to be proposed by the Board of
Directors to the Annual General Meeting.

External mandates
Pursuant to Article 31 of the Articles of Incorporation, and subject to approval by the Board of Directors, members of the Executive Management may not hold more than three additional mandates of which no more than one may be in listed companies.
The following mandates are not subject to the above limitations: (a) mandates in companies which are controlled by LEM or
which control LEM; (b) up to five mandates held at the request of LEM or companies controlled by it; and (c), subject to approval by the Board of Directors, up to three mandates in associations, charitable organizations, foundations, trusts and employee
welfare foundations. Mandates shall mean mandates in the supreme governing body of a legal entity, which is required to beregistered in the commercial register or a corresponding foreign register. Up to 20 mandates in different legal entities which
are under joint control or same beneficial ownership are deemed one mandate.

7.
Change of control and defensive measures
Opting-out clause
Any shareholder is released from the obligation to submit a public takeover offer to all shareholders if his participation in LEM
exceeds 33 1/3 % of the voting rights.
Clauses on changes of control
There is no particular clause in the Articles of Incorporation for changes of control. No member of the Executive Management
will receive additional severance payments if dismissed in the case of a change of control of the Company.

Management contracts
There are no management contracts with companies or individuals outside LEM Group.

5.
Compensation
Please refer to the compensation report on page 54.

6.
Shareholders’ participation rights
The rules on shareholders’ participation rights are outlined in the Articles of Incorporation. The rules for the convening ofGeneral Meetings, the participation rights and the majority rules for decisions all follow Swiss law. The complete Articles ofIncorporation can be downloaded from the Investor Relations pages on the website. http://www.lem.com/images/stories/files/
HQ/en/Investors/AGM Docs/2014/LEM_Holding_SA_Articles_of_Association_26062014.pdf
Voting rights and representation restrictions and inscription in the share register
There are no limitations on voting rights for shareholders who are entered into the shareholders’ register with voting rights.
Anyone purchasing registered shares is registered by the Board of Directors in the share register on request as a shareholder
with voting rights, provided he/she expressly declares that the shares have been bought and will be held for their own account.
Each shareholder may be represented by the independent representative or by a third party who need not be a shareholder
of LEM HOLDING SA.
Statutory quorums
The Articles of Incorporation contain no deviation from the applicable law. In case a second vote is necessary for elections, arelative instead of the absolute majority of the votes represented is required.
Convocation of the General Meeting of the Shareholders
Registered shareholders are convened to General Meetings by ordinary mail and by publication in the Swiss Official Gazette ofCommerce at least 20 calendar days prior to the day of the meeting.

8.
Auditors
The duration of the auditors’ mandate is one year. Ernst & Young has been auditing LEM since the financial year 2005/06, with Roland Ruprecht bearing the responsibility for the audit since 2018/2019. As required by law, the auditor-in-charge is changed every
seven years. Ernst & Young audits the Group’s consolidated financial statements as well as all of LEM’s Group companies in Switzerland and abroad that are subject to a statutory audit requirement. The audit fees and fees for additional services are as follows:
Type of service
In CHF thousands

2020/212019/20
363

Audit fees

338

Additional audit-related fees

41

0

Total

379

363

The Audit Committee evaluates and controls the performance (focus on areas that involve significant risk to LEM, ability toprovide effective and practical recommendations, open and effective communication and coordination), fees, and independence of the auditors each year. It discusses and reviews the scope of the audits, and the resulting feedback. Based on thisinformation, it determines which changes and improvements are necessary. The auditor’s report on the results of their audits
both orally and in writing. Financial statements as well as management letters are discussed in the ARC in the presence of theexternal auditors. During 2020/21 Ernst & Young attended two regular ARC meetings.

9.
Information policy
LEM informs its shareholders about the business status and its results on a quarterly basis in the form of press releases. These,
together with the Annual Review and Financial Report, are made publicly available on its website (http://www.lem.com/en/
in-vestors) and may be obtained in printed form from the company’s headquarters. Once a year, LEM holds a presentation forthe media, investors and financial analysts. Internal processes assure that price-sensitive facts are published without delay inaccordance with the ad hoc publicity rules of the SIX Swiss Exchange. At www.lem.com, detailed information is available, e.g.,
the Articles of Incorporation, interim and annual reports, investor presentations, press releases as well as the financial calendar.

AgendaAccording to Article 12 of the Articles of Incorporation, one or several shareholders who collectively hold 10 % of the sharecapital can call for a shareholders’ meeting and submit matters to be placed on the agenda.

Contact for investors and media: Andrea Borla, CFO, Chemin des Aulx 8, CH–1228 Plan-les-Ouates, or send an e-mail to investor@lem.com (phone: +41 22 706 12 50).

LEM Financial Report 20 | 21

LEM Financial Report 20 | 21

Page 52

Page 53

Compensation report

Compensation report

The future of LEM depends on our ability to attract, develop and retain talented people. Among the many measures we
use to achieve this goal are competitive compensation policies. Our compensation policies are designed to align the interests of the Executive Management and the Board of Directors with the interests of Shareholders.

1.
Board of Directors
1.1
General principles for compensation of non-executive Directors
The compensation of the Board of Directors is approved by the Annual General Meeting upon proposal by the Board of Directors based upon recommendation from the Nomination & Compensation Committee (NCC). The remuneration of the Board of
Directors consists of a fixed cash payment and is reviewed on an annual basis. The remuneration compensates for the personal
responsibility and exposure as member of the Board of Directors and the work related to the Board of Directors’ membership.
There is neither a variable compensation nor any participation in an equity-based compensation plan.

In brief
Core principles
LEM’s compensation policies are designed to reward results and performance as well as to create long-term value for Shareholders. The compensation policies are reviewed on an annual basis.
LEM’s Articles of Incorporation (www.lem.com/en/Investors > Corporate Governance) contain provisions regarding the approvalof compensation of the Board of Directors (BoD) and the Executive Management (Article 27), the supplementary amount for
new members of the Executive Management (Article 28), the general compensation principles (Article 29) as well as provisions
regarding the agreements with members of the Board of Directors and the Executive Management (Article 30).
The Compensation Report is based on section 5 of the annex to the Corporate Governance Directive issued by SIX Exchange
Regulation AG and articles 13 to 17 of the Ordinance Against Excessive Compensation in Listed Stock Companies (OaEC).
Compensation of the Board of Directors
The compensation of the Board of Directors consists exclusively of a fixed fee paid in cash. There is no variable compensation.
The compensation of the Chairman and the members of the Board of Directors depends on the responsibility of each member
and the related work such as Committee activity.
Compensation of the Executive Management
In order to encourage and reward results that contribute to the sustainable success of LEM, the total compensation of the
Executive Management consists of three elements: base salary, variable compensation and non-wage compensation. The
target-setting process for the variable compensation is carried out on an annual basis and includes quantitative and qualitative
performance criteria, including LEM’s financial results.
The members of the Executive Committee are entitled to attend the Board meetings relevant to their function but are excluded
from any deliberation and decision on their compensation. The compensation authorities are summarized in the following table:
Beneficiary

Compensation element

Proposal

1.2 Compensation for members of the Board of Directors
The Board of Directors adopted a remuneration scheme with a fixed membership fee paid in cash of gross CHF 250’000 for the
Chairman and CHF 80’000 for each member. Committee activity is compensated by membership fees of CHF 40’000 for theCommittee’s Chairman and CHF 20’000 for each member.
The tables below show the compensation per member of the Board of Directors in the financial years 2019/20 and 2020/21 fortheir term of office. At the Annual General Meeting held on 9th June 2020, the Shareholders approved a maximum compensation
amount for the term of office from the Annual General Meeting 2020 until the Annual General Meeting 2021 of CHF 1’100’000. The
actual costs for the Company are CHF 948’000.

2020/21
In CHF thousands

BoD

Compensation principles

NCC

Total compensation

Andreas Hürlimann 1, 5, 6

310

310

27

337

120

120

11

131

Ulrich Jakob Looser 3, 4

140

140

13

153

Ilan Cohen a

100

100

9

109

Werner C. Weber 7

100

100

9

109

François Gabella 7

100

100

9

109

Total

870

870

78

948

Total compensation

Taxes, social security
charges and similar
contributions (B)Total (A) + (B)2019/20

Approval

BoD within limits of articles
of association

Aggregate maximum amount
fixed compensation

BoD based on NCC proposal

Annual General Meeting(prospective approval)

BoD

Individual compensation

NCC

BoD

Executive Management

Aggregate maximum amount
fixed annual base salary

BoD based on NCC proposal

Annual General Meeting(prospective approval)

Executive Management

Aggregate amount short-term
incentive

BoD based on NCC proposal

Annual General Meeting(retrospective approval)

Executive Management

Aggregate maximum amountlong-term incentive

BoD based on NCC proposal

Annual General Meeting(prospective approval)

Executive Management

Individual compensation

NCC based on proposal from CEO

BoD

CEO

Individual compensation

Chairman of the BoD

BoD

LEM Financial Report 20 | 21

Page 54

Total (A) + (B)Ueli Wampfler 2

Annual fees (A)In CHF thousands

BoD and Executive Management

Annual fees (A)Taxes, social security
charges and similar
contributions (B)Andreas Hürlimann 1, 5, 6

310

310

27

337

Ueli Wampfler 2

120

120

11

131
153

Ulrich Jakob Looser 3, 4

140

140

13

Ilan Cohen 7, a

120

120

11

131

Werner C. Weber

100

100

9

109

François Gabella

80

80

7

87

Total

870

870

78

948

a including the amount of CHF 20’000 for R&D

4 Chairman of the Nomination & Compensation Committee

contribution
1 Chairman of the Board
2 Chairman of the Audit & Risk Committee
3 Member of the Audit & Risk Committee

5 Member of the Nomination & Compensation Committee

LEM Financial Report 20 | 21

6 Chairman of the Strategy Committee
7 Member of the Strategy Committee

Page 55

Compensation report

Compensation report

2.
Executive Management
2.1 General principles for compensation of Executive Management
The aggregate compensation of the Executive Management is approved by the Shareholders at the Annual General Meetingupon proposal by the Board of Directors. The proposals of the Board of Directors are based on NCC recommendation. The
compensation of the Executive Management is reviewed by the Board of Directors on an annual basis.

The number of objectives is large enough to allow each Executive to reach a fair level of short-term variable compensation rewarding for the results achieved even under changed business conditions. Since the degree of achievement of set objectives
has to be evaluated at the end of the period, a clear understanding of the metrics to be applied is established at the time oftarget setting and kept constant over the period. For each objective, the curve between minimum and maximum bonus level isdefined. Ambitious but achievable objectives are set as targets, at which 100 % of the respective target amount is attributed.

The total compensation of the Executive Management is composed of the following elements:

For Executive Management, the minimum payout of the short-term incentive is 0 % of the target amount and the weighted
maximum payout is 139 %. The target amount of the short-term incentive represents between 18 % and 25 % of the total target
compensation.

Compensation element

Instrument

PurposeDrivers

Range and cap

Shareholder approvalBase salaryMonthly cash
payments

Pay for the function

Scope and responsibilities, profile and competencies

N/A

Prospective maximum
amount (October –September)

Short-term incentive

Annual cash
payment

Pay for annual
performance

Business and individual
performance throughout the financial year

0 % – 139 % oftarget amount

Retrospective

Long-term incentive

Annual cash
payment

Participation in sustainable company success,alignment with
Shareholder interests

Achieved value creation
over three consecutive
financial years

0 % – 200 % oftarget amount

Prospective maximum
amount for payout
three years later

Non-wagecompensation

Pensioncontributions

Protect against risks
plus retirement anddependents’ coverage

Local legislation andmarket practice

N/A

The total compensation is in line with the market for comparable industrial companies considering the various remunerationlevels for different functions and locations. Furthermore, the compensation mix between base salary, variable compensationand non-wage compensation reflects sectorial and functional market practice. The full Board of Directors periodically reviews,
sets and approves the compensation system, based on the recommendation of the Nomination & Compensation Committee.
The latest external benchmark was performed in 2019 with support of Willis Towers Watson. The Global Grade factor has beenused to define the peer group, which allows comparability between companies based on revenues, number of employees,
geographical scope, business complexity and diversity. No additional mandates were awarded to Willis Towers Watson.
2.1.1 Base salary of Executive Management
Base salaries are paid monthly as fixed cash amounts.
2.1.2 Variable compensation of Executive Management
The target-setting process for the Leadership-for-Results (L4R) plan is part of the LEM performance management and is carried out on an annual basis by the NCC. All variable compensation is paid in cash and after approval by the Shareholders. The
Chairman of the Board of Directors (for the CEO) and the NCC (for the other members of the Executive Management) prepare
objectives and performance evaluations based on personal performance review.

The short-term incentive payout is presented for retrospective approval to the Shareholders along with the Annual Report andthe financial statements of the same financial year at the Annual General Meeting 2021 prior to being paid out.
Long-term incentive related to the sustainable financial performance of LEM GroupThe long-term incentive is defined as an annual target amount and is based on the performance of LEM evaluated over a periodof three consecutive financial years (2018/19 – 2020/21). The performance criterion is the cumulated Economic Value Added(EVA) over these three financial years. The Board of Directors defines the EVA objective at the beginning of year one and theevaluation of the performance takes place at the end of year three. Once the forward-looking EVA objective is defined, this EVA
objective remains unchanged over the three-year period.
For Executive Management, the minimum payout of the long-term incentive is 0 % of the target amount and the maximum
payout is 200 %. The target amount of the long-term incentive represents between 12 % and 22 % of the total target compensation.
For the long-term incentive cycle 2018/19 to 2020/21, the maximum amount approved prospectively by the Shareholders at theAnnual General Meeting in 2018 is CHF 1’200’000 for payout in 2021.
2.1.3 Non-wage compensation of Executive Management
For Executive Management, non-wage compensation consists of pension plans (retirement benefits) only.
Executive Management benefits from LEM’s Swiss pension plan, considered a defined contribution plan under Swiss law thatprovides retirement benefits and risk insurance for death and disability. IFRS, on the contrary, considers this plan as a defined
benefits plan. The insured base salary follows Swiss professional pension regulations without limitation of the amount. The
pension fund is funded by contributions from the company and the insured Executive.

Short-term incentive related to the Executive’s function, responsibility and obtained results
Each Executive’s individual target amount for the short-term incentive plan is communicated to the Executive at the beginningof the financial year together with the objectives and their weighting. The target amount and the objectives are based on therole and impact of the Executive as well as annual company priorities. Objectives are linked to audited financial indicators suchas EBIT and Net Profit, other quantitative indicators as well as qualitative targets based on strategic initiatives. At the end of theyear, the performance on each objective is evaluated resulting in the total amount to be paid.

LEM Financial Report 20 | 21

Page 56

LEM Financial Report 20 | 21

Page 57

Compensation report

Compensation report

2.2 Remuneration of Executive Management

Amounts approved by previous Annual General Meetings related to the period reported above:– Maximum amount base salary (for the period from 1 October 2019 to 30 September 2020): CHF 1’800’000– Maximum amount base salary (for the period from 1 October 2020 to 30 September 2021): CHF 1’830’000– Short-term incentive amount for 2019/20 for payment in 2020: CHF 659’811– Maximum amount long-term incentive 2018/19 - 2020/21 for payment in 2021: CHF 1’200’000– Pension fund contribution and company contribution to social security charges as paid out or accrued for in the reporting
period are included in the above amounts.

2020/21

In CHF thousands

Base salary2

Frank Rehfeld, CEO

Short-term
incentive

Long-term
incentive

Company’scontribution
to pension fundTotalcompensation

Company’scontribution tosocial security
charges

525

308

226

48

1’107

106

Executive management (excl. CEO) 1

1’165

587

314

118

2’182

207

Total

1’690

895

540

165

3’290

312

The overall variable remuneration paid out for 2020/21 to the Executive Committee ranged from 32 % to 50 % of the totalcompensation.

1 including CHRO (pro-rated 6.3 months)

2 Exceptional payment to compensate for unused vacation rights during the Covid 19 Pandemic

2019/20

In CHF thousands

Base salary

Short-term
incentive

Long-term
incentive

Company’scontribution
to pension fundTotalcompensation

Company’scontribution tosocial security
chargesFrank Rehfeld, CEO

458

218

186

47

909

78

Executive management (excl. CEO) 1

796

387

298

83

1’564

133

1’254

605

484

129

2’473

211

Total

3.
Loans to current and former members of the Board of Directors and Executive Management and related parties
Our Articles of Incorporation do not provide the basis to grant loans to current or former members of the Board of Directors,
the Executive Management or to any related party. Therefore, no loans have been granted in the financial years 2019/20 and2020/21 or in any previous year.

1 including Senior Vice President Industry (pro-rated 4.5 months)

The amounts are shown as follows:– Base salary: CHF 1’689’000 as paid out in the reporting period– Short-term incentive 2020/21: CHF 895’000 as proposed to the Annual General Meeting on 24th June 2021 for payout inJuly 2021.
– Long-term incentive: CHF 540’000 as accrued for or paid out during the reporting period– Pension fund contributions: CHF 165’000 as accrued for or paid during the reporting period– Company’s contributions to social security charges: CHF 312’000 as accrued for or paid during the reporting period

LEM Financial Report 20 | 21

Page 58

LEM Financial Report 20 | 21

Page 59

Auditor’s report

Report of the statutory auditor on the compensation report
We have audited the compensation report of LEM Holding SA for the year ended 31 March 2021. The audit was limited
to the information according to articles 14–16 of the Ordinance against Excessive Compensation in Stock Exchange
Listed Companies (Ordinance) contained in the note 1.2 on page 55 and on note 2.2 on page 58 of the compensation
report.

LEM HOLDING SA

Board of Directors’ responsibility
The Board of Directors is responsible for the preparation and overall fair presentation of the compensation report inaccordance with Swiss law and the Ordinance. The Board of Directors is also responsible for designing the remuneration system and defining individual remuneration packages.
Auditor’s responsibility
Our responsibility is to express an opinion on the compensation report. We conducted our audit in accordance with
Swiss Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the compensation report complies with Swiss law and articles 14– 16 of the Ordinance.
An audit involves performing procedures to obtain audit evidence on the disclosures made in the compensation reportwith regard to compensation, loans and credits in accordance with articles 14 – 16 of the Ordinance. The procedures
selected depend on the auditor’s judgment, including the assessment of the risks of material misstatements in thecompensation report, whether due to fraud or error. This audit also includes evaluating the reasonableness of themethods applied to value components of remuneration, as well as assessing the overall presentation of the compensation report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
OpinionIn our opinion, the compensation report for the year ended 31 March 2021 of LEM Holding SA complies with Swiss law
and articles 14 – 16 of the Ordinance.
To the General Meeting of LEM Holding SA, Plan-les-Ouates
Lancy, 12 May 2021
Ernst & Young Ltd

Roland Ruprecht
Licensed audit expert(Auditor in charge)

Victoria Napoly
Licensed audit expert

LEM Financial Report 20 | 21

Page 60

LEM Financial Report 20 | 21

Page 61Balance sheet

Income statement

AssetsIncome(before distribution of earnings)

Notes

In CHF thousands

31.3.2021

31.3.2020

3’315

3’652

Interest income from affiliated companies

98’89766’290Foreign exchange gain

1’912

1’588

Other financial income

57

395

Current assets

In CHF thousands

Dividend from affiliated companies

Cash and cash equivalents
Loans to affiliated companies

4

Current assets from affiliated companies
Other current assets
Other current assets from affiliated companies

4

55’3680

159’549

71’92541’93068’191

Total noncurrent assets

41’93068’191

Total assets

201’480

140’116

Total current assets
Noncurrent assets
Investments in affiliated companies

1

Notes

2020/212019/20554’54476’083

2’768

2’144

2’075

1’497

6

Other income from affiliated companies

442

56

30’906

6’150

90’73585’930Notes

2020/212019/20(4’400)(4’360)1(26’260)

0

(256)

(436)

4

Total income

ExpenseIn CHF thousands

Office, administration and personnel expense
Participations’ impairment
Financial expense
Foreign exchange loss

Liabilities and equity

6

Total expense
Notes

In CHF thousands

31.3.2021

Profit before taxes
Income taxes

Loans from affiliated companies

4

Current liabilities from affiliated companies

24’000

9’000

48’521

14’91877

53

Other current liabilities

3’197

1’825

Total current liabilities

75’79625’797

7

Net profit for the year

EquityShare capital

2

570

570

285

285

– balance carried forward

68’46536’061– profit for the year

57’52077’983

Legal reserves
Free reserves
Treasury shares(1’156)(581)

Total equity

125’684

114’319

Total liabilities and equity

201’480

140’116

LEM Financial Report 20 | 21

3

Page 62(2’673)(7’469)58’02278’46031.3.2020

Current liabilities
Current financial liabilities(1’798)(32’714)LEM Financial Report 20 | 21

Page 63

(501)

(477)

57’52077’983

Notes to thefinancial statements

Notes to thefinancial statements

Principles for the establishment of the financial statements
The accompanying financial statements have been prepared in accordance with the requirements of the Swiss Code of Obligations. Regarding the inclusion of LEM Holding SA in the consolidated financial statements, the accounting and reporting
principles described in the notes to the consolidated financial statements apply.

4.
Other current assets and loans from/to affiliated companies
In 2020/21, LEM Holding received CHF 30m dividend in kind from LEM Intellectual Property SA, company under liquidation,
being a receivable from LEM International SA.

LEM Holding SA does and did not have any employees.

The other CHF 25.4m receivable are resulting from the sale of a 5-year usufruct Trademark license to LEM International SA,
which has been concluded in March 2021.

1.

The increase of the loan from the affiliated companies is coming from LEM Intellectual Property SA having transferred the cash
received in relation with last year Intellectual Property sale to LEM International SA.

Investments in affiliated companies
31.3.2021

31.3.2020

Historical cost minus impairment

41’93068’191

Total

41’93068’191

In CHF thousands

This year, considering the lower activity due to Covid–19 outbreak in certain regions and also the slow-down of the growth
perspectives in some other regions in relation with the ongoing technological shift in the Automotive segment, some participations have been impaired for a total amount of CHF 26.3m, which explains the decrease.

2.

The increase of the loan to the affiliated companies is coming from LEM International SA and from LEM China Co. Ltd to financethe above-mentioned payment of Intellectual Property.

5.

Dividend from affiliated companies

The dividends from subsidiary decrease is mainly coming from LEM International SA which did not pay any dividends in 2020/21
whereas a CHF 23.3m dividend in 2019/20.

Share capital

Opening capital 1.4.2020

Number ofsharesPar value pershare in CHF

Capital in CHF
thousands

1’140’000

0.50

570

Change of capital0

Closing capital 31.3.2021

01’140’000

0.50

570

6.

Exchange effect

In CHF thousands

Exchange gains/(losses)
Fair value revaluation on derivatives 1

2020/212019/20764(1’572)(1’133)488

Gains/(losses) on derivatives 1

647

(93)

Exchange effect277(1’176)

In CHF thousands

2020/212019/20

Current taxes

(501)

(477)

1 Position includes cost of derivative hedging.

3.

Treasury shares
Price per share in CHF
NumberValue 1.4.2019

High

Average

Low

795

Purchases at cost
Sales at cost
Value 31.3.2020

983

6’773

1’500.27

1’302.78

902.11

8’824(7’012)

1’520.00

1’315.69

917.47(9’226)556

Purchases at cost
Sales at cost
Value 31.3.2021

Value in CHF
thousands

581

7’846

1’940.38

1’595.19

1’002.10

12’516(7’794)

1’970.22

1’532.01

1’011.32(11’940)608

7.

Income taxes

Adjustments of tax provisions of previous periods
Total

1’156

Subsidiaries of LEM HOLDING SA did not own any shares of LEM HOLDING SA.
Treasury shares are valued at the lower of cost or market value.

LEM Financial Report 20 | 21

Page 64

LEM Financial Report 20 | 21

Page 65

0

0

(501)

(477)

Notes to thefinancial statements

Notes to thefinancial statements

8.
Significant shareholders according to article 663c of the Swiss Code of Obligations
On 31 March 2021, the following shareholders held 3 % or more of the share capital and voting rights:

Proposed appropriation of available earnings
In CHF thousands

31.3.2021
SharesIn number of shares, percent of shareholding

Balance brought forward from previous year

31.3.2020
In %SharesVariation of treasury shares
In %Werner O. Weber and Ueli Wampfler, in Zollikon/Wollerau, Switzerland, through WEMACO
Invest AG and Voltano AG in Cham, Switzerland582’600

51.1 %

582’700

51.1 %

Ruth Wertheimer, in Kfar Shmaryahu, Israel, through 7-Industries Holding B.V.,
in Amsterdam, Netherlands

36’381

3.2 %100’081

8.8 %Capital Group Companies Ltd., Los Angeles, USAn.a.

3 %–5 %1

n.a.

n.a.

Invesco Ltd., Atlanta, USAn.a.

< 3.0 %2

36’883

3.2 %36’2503.2 %36’0003.2 %J. Safra Sarasin Investmentfonds AG, Basel, Switzerland

31.3.2021

31.3.2020

67’88435’079(575)

402

Net profit for the year

57’52077’983

Total available earnings

124’829

113’464(47’880)(45’580)

76’94967’884

Proposal of the Board of Directors
Ordinary dividend
Balance to be carried forward

1 Capital Group disclosed a 3.02 % stake as of 31 August 2020, but did not report the exact number of LEM shares per 31 March 2021

The Board of Directors proposes the distribution of an ordinary dividend of CHF 42 per share. Net of 35% withholding tax, thisis an ordinary cash dividend of CHF 27.3 per share.

9.

The proposed appropriation of available earnings is made in compliance with article 671 of the Code of Obligations.
Shares held by LEM Holding SA or any of its subsidiaries are not entitled to dividends.

2 Invesco disclosed a 2.998 % stake as of 15 December 2020, but did not report the exact number of LEM shares per 31 March 2021

Guarantees in favor of third parties on behalf of subsidiaries
31.3.2021

31.3.2020

1’814

1’803

31.3. 2021
Number ofshares held

31.3.2020
Number ofshares held

Andreas Hürlimann

1’001

1’001

François Gabella

600

600

Ilan Cohen

300

300

70’60070’700Ulrich Jakob Looser

100

100

Werner C. Weber0072’60172’701

31.3. 2021
Number ofshares held

31.3.2020
Number ofshares held

Frank Rehfeld, CEO

00Andrea Borla, CFO

00Rodolphe Boschet, CHRO

00

Rebecca Cullinan, SVP Industry

00Rainer Bos, SVP Automotive

0

0

Total

0

0

In CHF thousands

Amount of guarantees issued

10.

Shareholdings

Shareholdings of nonexecutive Directors

Ueli Wampfler

Total

Shareholdings of Executive Management

LEM Financial Report 20 | 21

Page 66

LEM Financial Report 20 | 21

Page 67

Auditor’s report

Auditor’s report

Report of the statutory auditor on the financial statements

Report on other legal requirements
We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA) andindependence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible with our independence.

As statutory auditor, we have audited the financial statements of LEM Holding SA, which comprise the balance sheet,income statement and notes (pages 62 to 67), for the year ended 31 March 2021.
Board of Directors’ responsibility
The Board of Directors is responsible for the preparation of the financial statements in accordance with the requirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing, implementing
and maintaining an internal control system relevant to the preparation of financial statements that are free from material
misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and applying
appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

In accordance with article 728a para. 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control
system exists, which has been designed for the preparation of financial statements according to the instructions of
the Board of Directors.

Auditor’s responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit inaccordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance whether the financial statements are free from material misstatement.

To the General Meeting of LEM Holding SA, Plan-les-Ouates
Lancy, 12 May 2021

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, theauditor considers the internal control system relevant to the entity’s preparation of the financial statements in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control system. An audit also includes evaluating the appropriateness of
the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall
presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

We further confirm that the proposed appropriation of available earnings complies with Swiss law and the company’s
articles of incorporation. We recommend that the financial statements submitted to you be approved.

Ernst & Young Ltd

Roland Ruprecht
Licensed audit expert(Auditor in charge)

Victoria Napoly
Licensed audit expert

LEM Financial Report 20 | 21

Page 69

OpinionIn our opinion, the financial statements for the year ended 31 March 2021 comply with Swiss law and the company’s
articles of incorporation.
Report on key audit matters based on the circular 1/2015 of the Federal Audit Oversight Authority
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of thefinancial statements of the current period. We have determined that there are no key audit matters to communicate inour report.

LEM Financial Report 20 | 21

Page 68

Group subsidiaries

LEM is a global player with production plants and development centers in Beijing (China), Geneva (Switzerland), Tokyo (Japan)
and Sofia (Bulgaria). The Company has a dedicated R&D Center in Lyon (France) and sales offices at all its customers’
locations and offers seamless service around the globe.
For a complete list of subsidiaries and offices, refer to www.lem.com > Contact > Sales Locator
Asia

EuropeLEM HOLDING SA
Chemin des Aulx 8
CH–1228 Plan-les-Ouates

LEM Europe GmbH, Branch Belgium
Egelantierlaan 2
B–1851 Humbeek

LEM Electronics (China) Co. Ltd
Linhe Street 28, Shunyi District
CN–101300 Beijing

LEM International SA
Chemin des Aulx 8
CH–1228 Plan-les-Ouates

LEM Europe Denmark,Filial af LEM Europe GmbH
Haraldsvej 60A,1.
DK–8960 Randers

LEM Japan KK
2–1–2 Nakamachi
JP-Machida, 194–0021 Tokyo

LEM Intellectual Property SA
Avenue Beauregard 1
CH–1700 Fribourg
LEM Management Services Sàrl
Chemin des Aulx 8
CH–1228 Plan-les-Ouates
LEM Tech France SAS
Les Allées du Parc
Allée des Parcs 575/655
F–69800 Saint-Priest

LEM Europe GmbH,
Succursale France
Avenue Galois 15
F–92340 Bourg-la-Reine
LEM Europe GmbH,
Succursale Italia
Via V. Bellini 7
I–35030 Selvazzano Dentro, PD
LEM Europe GmbH,
Branch UK
Suite 10 West Lancs Investment
Centre Mapleview
Whitemoss Business Park
UK-Skelmersdale WN8 9TG

LEM Europe GmbH
Frankfurter Straße 74
D–64521 Groß-Gerau
LEM Europe GmbH, Branch Austria
Concorde Business Park 2/F/6
A–2320 Schwechat

LEM Bulgaria EOOD
Iliensko Shosse 8
BG–1220 Sofia

LEM Management Services Sàrl,
Branch India
Level 2, Connaught Place
Bund Garden Road
IN–411 001 Pune
LEM Management Services Sàrl,
Branch Korea
Seocho-Dong
Wonil Bldg.1–3F (311) 10
Nambushuhwan-Ro 333-Gil
Seocho-Gu
KR-Seoul
LEM Management Services Sàrl,
Taiwan Branch
7F., No. 342, Wenlin Road
Shilindistrict
TWN–11163 Taipei

North America
LEM Russia, LLC
Staritskoe Shosse 15
RU–170040 Tver

LEM U.S.A., Inc.
11665 West Bradley Road
USA-Milwaukee, WI 53224

Copyright© 2021 LEM HOLDING SA,
Plan-les-Ouates

LEM Financial Report 20 | 21

Page 70

Concept and text
LEM
Cabinet Privé deConseils SA, Genève
Process AG, Zurich

DesignProcess AG, Zurich

PhotosMara Truog, Zurich
Getty Images

Printing
Druckprodukt, Zurich

LEM HOLDING SA
Chemin des Aulx 81228 Plan-les-Ouates
GenevaSwitzerland
www .lem.com

Financial Report 20 | 21